China bans helium exports amid Iran war escalation

China has imposed an immediate ban on helium exports, citing the escalating conflict between Iran and the United States. This move significantly disrupts global supply chains for critical technologies that rely on helium, particularly in the production of advanced computer chips essential for artificial intelligence.

The decision comes as China heavily invests in AI but depends on imports for the majority of its helium needs, producing only 15 percent domestically. The ongoing conflict has already limited shipping traffic through the Strait of Hormuz, a vital route for helium exports from countries like Qatar, which accounts for a third of global production.

Cory Combs, a research leader at Trivium China, told Reuters that the export ban is a clear strategy to secure domestic supplies amid renewed tensions. China announced the ban on Friday without providing an official reason. Earlier this year, the conflict caused a global helium shortage, even raising concerns in Norway about hospital MRI machines requiring helium for cooling.

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The ban on exporting helium is a clear attempt to protect domestic supplies after the Iran war flared up again.