China is no longer simply reacting to pressure from the West — it is crafting long-term strategies to reduce dependency on foreign technologies. In the face of escalating U.S. sanctions, especially on semiconductors and AI technologies, Beijing has accelerated domestic innovation. This isn't just about economic self-sufficiency; it's a strategic pivot to secure technological sovereignty. China is investing heavily in education, R&D, and supply chain diversification, while also strengthening ties with non-Western economies. The goal is to build resilience in core industries and reduce vulnerability to external pressures. Although the sanctions have slowed certain sectors in the short term, they’ve also sparked a wave of innovation and policy reform. In many ways, restrictions are fueling a new era of national ambition. As the global power balance shifts, China’s response to sanctions may define its role in shaping the future of the digital economy.