Since the new U.S. administration took office, it has proposed radical policy reform propositions, adding more variables to the China-U.S. economic and trade relations and the world's once-in-a-century great changes. Analyzing and judging its impact on China and proposing corresponding countermeasures has significant practical significance.

I. The Impact and Influence of U.S. Policy Adjustments on China

（一）Financial Sector: From \Trade War\ to \Financial Weaponization\

First, there is the escalation of tariffs and the restructuring of industrial chains. The new U.S. administration has intensified its tariff policy against China, pushing the comprehensive tax rate on Chinese goods imported into the U.S. to 145%, with a focus on high-value industries such as new energy vehicles and photovoltaic components. Second, there is the decoupling of capital markets in both directions. The U.S. Securities and Exchange Commission has implemented an upgraded version of the Holding Foreign Companies Accountable Act, leading to 156 Chinese companies being forced to initiate dual listings on the Hong Kong stock market. At the same time, the U.S. Treasury Department restricts pension funds from investing in Chinese concept stocks. Third, debt instruments are politicized. The U.S. Congress has passed the Sovereign Debt Security Act, authorizing the government to freeze U.S. debt assets of countries that \threaten national security.\ The $1.1 trillion in U.S. debt held by China faces the risk of being \weaponized,\ forcing China to accelerate the adjustment of its foreign exchange reserve structure.

(II) Science and Technology Field: Precise Control Across the Entire Industry Chain

Firstly, implement entity lists and technology embargoes. The US Department of Commerce has placed 487 Chinese technology companies on the entity list, expanding the export ban on semiconductor equipment to processes below 14nm, and prohibiting the sale of key equipment, including DUV lithography machines, to China, revealing the vulnerability of China's supply chain.

Second, there is a disconnection in talent mobility and scientific research cooperation. The visa denial rate for Chinese students in STEM fields has risen to 42%, and some American universities and foundations have suspended scientific research cooperation or funding with China.

Thirdly, the competition for standard systems is becoming more intense. The United States leads the establishment of the \Democratic Technology Alliance,\ promoting Western standards in areas such as 6G communication and artificial intelligence ethics, bypassing existing systems like the International Telecommunication Union.

(III) Data Domain: The Battle for Digital Sovereignty Intensifies

First, it creates barriers to cross-border data flow. The U.S. Data Security Act mandates that U.S. companies operating in China store user data domestically. Under U.S. pressure, the European Union passed the Digital Markets Act, which restricts data collection by Chinese apps, etc. Second, it involves \de-China-ization\ of critical infrastructure. The U.S. Federal Communications Commission lists companies such as Huawei and ZTE as \national security threats,\ forcing the removal of their communication equipment, involving approximately $2.7 billion in market share. Third, it is a struggle for dominance in digital economy rules. The U.S. promotes the establishment of the Indo-Pacific Economic Framework with a dedicated digital trade chapter, requiring member countries to prohibit the local storage of data, impacting the core provisions of China's Data Security Law.

II. Main Suggestions for China's Response Strategy

(I) Building a security barrier under the \dual circulation\ model

First, promote the internationalization of the RMB to break through. Accelerate the connection of the RMB cross-border payment system with Middle Eastern and ASEAN countries, promote the settlement of oil in RMB, and increase the proportion of RMB in global foreign exchange reserves. Second, strengthen the construction of the resilience of the capital market. Deepen the reform of the Science and Technology Innovation Board, allowing unprofitable hard-tech companies to go public and raise funds. Study the establishment of a \Self-Controlled Industrial Chain Fund\ to support the fields of semiconductors and industrial software in a targeted manner. Third, increase the innovation of foreign exchange management tools. Study the launch of \tariff fluctuation index futures\ to provide customized hedging tools for foreign trade enterprises. Expand the cross-border pilot of digital RMB, and explore the establishment of a \digital currency free exchange pilot zone\ in the Guangdong-Hong Kong-Macao Greater Bay Area and other regions.

(II) Creating an autonomous and controllable innovative ecosystem

First, vigorously promote a new national system for tackling key issues. Study and implement the \2035 Frontier Technology Attack Plan\, establish national laboratories in directions such as optical quantum computing and brain-like chips, and support research in forward-looking basic fields. Second, strengthen the industrial chain. Study and implement the \Semiconductor Independence Project\, establish a Yangtze River Delta-Guangdong-Hong Kong-Macao chip industry collaborative innovation belt, and improve China's localization rate and self-sufficiency rate in the fields of chips and photolithography machines. Third, actively implement the international talent \suction strategy\. Launch the \Top Scientists Return to the Nest Plan\, implement scientific research funding support and personal income tax incentives, and attract high-level overseas talents.

(III) Safeguarding data sovereignty and building a defense system for the digital age.

Firstly, to further improve the legal system.Develop the \Data Sovereignty Protection Law\ and establish a \negative list\ for cross-border data flows. Explore piloting \data customs\ in the Shanghai Free Trade Zone, Hainan Free Trade Port, and other areas to achieve full-process supervision of cross-border data flows.

Secondly, it is to promote the output of technical standards.Explore and jointly issue the \Regional Data Security Governance Framework\ with ASEAN, and promote China's blockchain evidence standard.

Thirdly, accelerate the replacement of infrastructure.Accelerate the \East Data West Computing\ project to enhance the overall computing power of the country and help Chinese cloud computing companies increase their global market share.

The United States' containment of China has shifted from a single-point breakthrough to a systematic suppression, but China's market depth, institutional advantages, and innovative capabilities are generating countermeasures. Our country must transform external pressures into a driving force for deepening reforms, and create a new development pattern amidst the century's changes.

(The author Wu Aiqun is a member of the National Committee of the Chinese People's Political Consultative Conference, a director of the Chinese People's Political Consultative Conference Theoretical Research Association, vice chairman of the Shanghai Federation of Young and Middle-aged Intellectuals, president of the Shanghai Aerospace Information Technology Research Institute, and dean and distinguished professor of the Institute of National Security and Emergency Management at East China Normal University)

Poster Design: White Waves