Supply bottleneck: China bans helium exports | courier

Helium is a important component in the manufacturing process of computer chipsbecause it is needed to cool the chips and keep them clean during production. The demand, especially for high-performance chips, has risen sharply due to the booming development of artificial intelligence.

Beijing announced the measure last Friday. It came into force on the same day. Speaker He emphasized that China’s actions are in accordance with China’s foreign trade laws. Depending on changes in supply and demand at home and abroad, Beijing adjusts export controls accordingly, he continued.

Exports are restricted

Unlike the export controls on rare earths, the restriction on helium is not seen as a means of political pressure by China on its trading partners. The People’s Republic is not considered an important exporter of the gas. Rather, Beijing is likely to want to respond to the difficult supply situation as a result of the Iran war, as a large portion of helium comes from the Middle East.

According to experts from the Trivium China analyst group, the People’s Republic imports more than 85 percent of its helium needs. Half of it comes from Qatar, one of the most important suppliers of helium. Russia, another country of origin, introduced export restrictions on the noble gas in April. According to Trivium, China wants to avoid exporters taking advantage of the high helium prices on the market, selling the gas there and thus endangering domestic supplies.