China Imposes Helium Export Controls Amid Global Supply Shortages

Gary Ng, senior economist at French bank Natixis, pointed out that China wants to protect its industries, as the global supply of helium has been greatly reduced. He said that this export control measure is to protect the local industry, especially given its importance for chip manufacturing. According to Ng, China has taken this measure for political reasons to secure supplies for more local use. Cameron Johnson, senior partner at Shanghai-based consultancy Tidalwave Solutions, said that it is not known when global helium supplies will be normalized. Johnson pointed out that China's export restrictions mean they know they do not have enough helium to meet their needs. However, Gary Ng said that China is a relatively small exporter of helium, so the move may not have a huge global impact, but the current supply crunch may put some pressure on global supply. This move comes at a time when China is ramping up its domestic chip and artificial intelligence manufacturing capabilities to meet its own significant artificial intelligence capabilities.