Abstract: After the completion of the “301 Investigation” by the United States on China's intellectual property, innovation, and other fields, the United States has frequently imposed tariffs on products imported from China, implemented export controls, and establish “Entity List” for Chinese science and technology enterprises, which generated a complex and far-reaching impact on China's scientific and technological development. At the same time, Chinese government also adopted equivalent tariff countermeasures and issued multiple protection and incentive policies in high-tech fields such as independent research and development of chips and operating systems to reduce the negative impact of the US technology crackdown on China. And, based on China's special economic operation system, local governments, as the executing entities of central policies, can promote the development of specific industries by allocating resources in funds, talent, and land. The above facts and background lead to the question that this article aims to explore: how can local governments play a role in creating a favorable living environment for science and technology enterprises under the impact of technology suppression in the United States, thereby promoting the entry of science and technology enterprises and achieving self-reliance and self-improvement in technology? Therefore, referring to the realistic background of the US's suppression of China's scientific and technological development, this paper evaluates the impact of the US's implementation of scientific and technological repression on the proportion of technological enterprises entering at the urban level in China. Using the registration information of Chinese technology-based enterprises January 2017 to December 2019, we construct monthly enterprise entry data for Chinese cities and used difference-in-differences method to identify how trade frictions affect China's industrial structure adjustment by affecting the proportion of technology-based enterprises entering. Results show that cities that have been greatly impacted by trade frictions have seen a significant increase in the number and proportion of science and technology enterprises entering, and this conclusion still holds after a series of robustness tests. In addition, in cities with a high proportion of foreign-funded enterprises and strong export conversion capabilities, the reverse effect of trade frictions is stronger, and the upgrading effect of industrial structure is more significant. Furthermore, this paper finds that local governments play an important role in alleviating the negative impact of science and technology industry under the United States's technology crackdown. Specifically, local governments can increase capital for technology development, attract talents and improve land supply to create a good external environment for the development of technology enterprises, and then optimizes the urban industrial structure. In summary, this article has significant practical significance and provides useful insights. When facing sudden technological suppression from specific trading partners, in the short term, local governments should take measures to actively promote the optimization of resource allocation, thereby reducing the negative impact of external shocks; in the long run, the government should lay out long-term strategies, such as promoting diversified international cooperation and improving core technological level. By combining short-term and long-term strategies, as well as internal and external strategies, enterprises can fully enhance their resilience in the face of sudden shocks, thereby promoting high-quality economic development.