China officially blocked helium exports, citing supply chain control amid geopolitical tensions.

China on Friday announced a temporary export ban on helium, a key element for chipmaking, as escalation of the Iran war adds to global supply disruptions. China's commerce ministry and customs agency implemented the ban effective immediately, citing provisions of the Foreign Trade Law of the People's Republic of China, without elaborating on specific reasons.

Helium is crucial for semiconductor manufacturing and is also used in medical applications such as cooling MRI machines. Since the Iran war began in late February, global helium supply has been disrupted and prices have risen substantially. China produces only about 15 percent or less of its own helium, importing much of it from Qatar, which generates roughly one-third of the world's supply, according to research from the consultancy Trivium China.

China is moving to protect its industries as global helium supplies have become "very tight," said Gary Ng, senior economist at French bank Natixis. "Such an export control measure is intended to protect the local industry, especially as it is critical to chipmaking," Ng explained, noting that the measure is likely driven more by securing supply for domestic use than by political considerations.

The move reflects China's push to boost self-sufficiency in chipmaking and artificial intelligence amid its intensifying technology race with the U.S. The timeline for global helium supply normalization remains uncertain, according to Cameron Johnson, senior partner at Shanghai-based consultancy Tidalwave Solutions.

"The fact that they are now banning exports basically tells me that they know there's simply not enough helium to do what they need to do," Johnson said.

While China is a relatively small helium exporter and the ban may not significantly impact global markets, Ng cautioned that some pressure on global supply remains likely given current supply constraints.