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China on Friday announced a temporary suspension of helium exports, a move expected to help secure domestic supplies of the critical gas as the ongoing Iran conflict continues to disrupt global availability.
In a joint statement, China’s Ministry of Commerce and the General Administration of Customs said the export restriction takes immediate effect under provisions of the country’s Foreign Trade Law. The authorities did not specify why the measure was introduced or how long it would remain in place.
Helium is an essential input for semiconductor manufacturing and has wide applications in healthcare, including cooling MRI scanners. Since fighting involving Iran intensified in late February, global helium supplies have tightened significantly, driving prices sharply higher.
Despite being a major industrial power, China produces only a small share of the helium it consumes—estimated at around 15% or less. It relies heavily on imports, particularly from Qatar, which accounts for about one-third of global helium production, according to research cited by consultancy Trivium China.
Analysts said Beijing’s decision is primarily aimed at shielding domestic industries from worsening supply shortages rather than serving a geopolitical objective.
Gary Ng, senior economist at French bank Natixis told Reuters that the global helium market has become extremely constrained, making it necessary for China to prioritise supplies for sectors that depend on the gas.
He said the export restrictions are intended to protect local manufacturers, especially the semiconductor industry, and are more likely driven by supply security concerns than political considerations.
The decision also aligns with China’s broader push to strengthen its domestic semiconductor and artificial intelligence capabilities as technological competition with the United States intensifies.
Cameron Johnson, senior partner at Shanghai-based consultancy Tidalwave Solutions, said it remains unclear when international helium supplies will stabilise. According to him, China’s decision to halt exports suggests officials believe available supplies are insufficient to meet domestic demand.
Even so, economists say the global impact may be limited because China is not a major helium exporter. However, the restrictions could still add pressure to an already strained international market amid ongoing supply disruptions.
With inputs from agencies
