DevelopingChina issues temporary ban on helium exports as Iran war weighs on chip supply chain
The ban on shipments of the gas, a crucial raw material in semiconductors and other sectors, comes as Middle East conflict stretches stocks
China has imposed a temporary ban on exports of helium, with the restrictions taking effect immediately, the Ministry of Commerce and the General Administration of Customs announced on Friday.
The announcement said the measure was introduced under the Foreign Trade Law, but did not specify any destination markets or exemptions, which implied the ban applies to all overseas shipments.
Helium, a by-product of liquefied natural gas production, is a critical input for a range of sectors including semiconductors, medical equipment and aerospace.
China is heavily reliant on imports of helium, with more than 80 per cent of its supplies coming from overseas, according to Chinese commodities data provider SCI99.
Xu Tianchen, a senior economist at the Economist Intelligence Unit, said the export ban could have been triggered by helium supplies remaining “very tight” despite the recent de-escalation in the Iran war.