Abstract: The U.S. has long employed technology export controls to hinder the progress and competitive edge of Chinese high-tech enterprises. In recent years, the U.S. has intensified these efforts through the use of Entity List Sanctions, a highly precise and targeted export control mechanism. Between 2018 and March 2023, it imposed 24 Entity List Sanctions on Chinese entities, impacting over 680 Chinese high-tech companies and entities operating in the computer, communications, defense and military, aerospace and aviation industries. By employing this technology blockade, the U.S. aims to impede the progress of independent innovation within Chinese high-tech enterprises. As a result, the impact of U.S. Entity List Sanctions has garnered significant attention and discussion within Chinese academia and industry. However, existing research on these sanctions is primarily theoretical, lacking sufficient empirical findings based on large samples. Moreover, the results from theoretical studies and infrequent empirical analyses often diverge. Therefore, a comprehensive analysis is necessary to examine how U.S. Entity List Sanctions affect Chinese enterprises’ independent innovation, considering both theoretical and empirical perspectives. To address this research gap, our study analyzes the short- and long-term effects of U.S. Entity List Sanctions on Chinese companies’ independent innovation. We also explore the boundary conditions of these effects, examining risk perception, diversification, and resource constraints. Our research primarily focuses on A-share computer and communication industry listed companies from 2013 to 2021. The findings of our study indicate that U.S. Entity List Sanctions have a negative impact on Chinese firms’ independent innovation, primarily driven by short-term effects that diminish over time. Furthermore, our analysis reveals that firms exhibiting positive risk perception, high diversification, and ample resources are better equipped to resist and overcome the constraints imposed by U.S. Entity List Sanctions on their innovation efforts. This study offers practical contributions in several areas. Firstly, it highlights the importance of Chinese confidence in overcoming the challenges posed by U.S. Entity List Sanctions. Secondly, it emphasizes the significance of a positive mindset among Chinese enterprises when approaching these sanctions, encouraging a rational assessment of associated risks while fostering enthusiasm and initiative for team-based innovation. Thirdly, the study advocates for proactive exploration of diversified business models by Chinese companies, facilitating cross-field, cross-business, and cross-product transformations to drive technological evolution and continuous innovation. Lastly, it underscores the need for increased government support for corporate innovation and the alleviation of resource constraints faced by enterprises.