China Implements Temporary Export Ban on Helium Gas, Effective Immediately

China's Ministry of Commerce and General Administration of Customs jointly issued an announcement on Friday, May 10, 2024, stating that under relevant provisions of the 'Foreign Trade Law of the People's Republic of China,' a temporary export ban on helium gas (customs code: 2804290010) will be implemented. The announcement takes effect immediately upon release, with future policy adjustments to be announced separately based on circumstances.

Helium, due to its extreme scarcity and multifunctionality, is hailed in the industrial sector as the 'golden gas' and is considered a critically important strategic resource. It is widely used in high-tech fields, including semiconductor manufacturing, superconducting magnets in magnetic resonance imaging (MRI), and rocket fuel pressurization in aerospace and defense industries.

In the chip manufacturing process, helium plays an indispensable role, primarily used in core production stages such as wafer cooling, lithography, and leak detection, directly affecting chip yield and stability.

According to a Deutsche Bank research report, helium demand from semiconductor manufacturing accounts for 21% of global demand, and the ultra-clean inert environment it creates currently has no viable substitute.

With demand surging, the helium market has experienced severe supply shortages, leading to volatile prices described as 'changing daily.' A specialty gas producer in Shanghai stated that despite operating in a 'double-shift' mode at full capacity and doubling output since the beginning of the year, it remains difficult to close the supply gap.

China has long been one of the world's major helium importers, but 2024 data shows it has also been exporting this rare gas to markets such as the European Union, Japan, France, South Korea, and the United States.

This export ban reflects China's strategic determination to prioritize securing supplies of critical materials for its domestic semiconductor industry and national defense security amid international geopolitical tensions and supply chain volatility.