The U.S. government is currently closing its doors, and China's three successive sanctions within 12 hours have accurately hit the sore spot of the United States.

On the afternoon of October 9th, China's Ministry of Commerce announced that it would include more than 10 American corporate entities in the "List of Unreliable Entities". This measure is based on the Foreign Trade Law of the People's Republic of China, the National Security Law and the Anti-Foreign Sanctions Law and other laws, aiming at these entities' suspected military and technical cooperation with Taiwan Province, making negative remarks about China, and assisting foreign governments in imposing sanctions on China.

It is worth noting that also on the morning of the 9th, the Ministry of Commerce issued two announcements on rare earths, restricting the export of rare earth resources and rare earth processing technology respectively. We have focused on analyzing the specific content impact in previous programs. Friends who haven't watched it can look back.

Returning to the sanctions against more than a dozen American companies, our analysis believes that their core significance lies in safeguarding China's national sovereignty, security and development interests, and reflects China's principle of "reciprocal countermeasures" in international trade and geopolitics.

Strategic deterrence and response: This is a direct response to foreign entities¡¯ ¡°interference in domestic affairs¡± and ¡°harming Chinese interests.¡±

The anti-drone technology company, for example, has been partnered with the Taiwan authorities to develop military technology, while TechInsights is suspected of assisting the U.S. sanctions by analyzing Chinese semiconductor technology.

These behaviors are typical threats to China's core interests, and their inclusion in the list aims to cut off its economic chain related to China and force relevant entities to reassess their China strategies.

Economic and trade impact: Measures include prohibiting these entities from carrying out import and export activities with China, making new investments in China, and prohibiting organizations and individuals in China from trading or cooperating with them.

This will limit their access to China's market, technology and supply chain resources and may hinder their global business. For China, this will help protect local companies from unfair competition and promote technological self-reliance under the "dual circulation" strategy.

Geopolitical signals: In the context of the Sino-U.S. technological war and tensions in the Taiwan Sea, this move strengthens China's international image of "repression by law", similar to the U.S. "entity list" mechanism. It may exacerbate Sino-U.S. friction, but also leave room for negotiations, reminding foreign companies to abide by the "one China" principle and not interfere in domestic affairs.

We have also noticed that China is currently actively responding to provocations from the United States. However, because the two parties in Congress failed to reach an agreement on the temporary funding bill, the negotiations between the Democratic Party and the Trump administration have reached a deadlock. The U.S. federal government has entered a state of shutdown since October 1.

The closure of the U.S. government not only has an economic impact, resulting in a short-term loss of about 0.1% to 0.2% of GDP. More importantly, because of the closure of public functional departments, it is impossible to respond to China's opposition measures in time, and some functions of the State Council and the Ministry of National Defense are paralyzed and unable to respond to China's sanctions in time.

So from this point of view, China's counter-time point has chosen the right advantage, the US Trump administration because of the shutdown, can not quickly mobilize resources to respond, see when they will close the door.