China says it has temporarily blocked exports of helium, a key element for chip production

China said today it has temporarily blocked exports of helium, a key element for chip production, as the escalating war in Iran contributes to supply disruptions around the world.

China's Ministry of Commerce and its customs agency said in a brief statement that they are imposing a temporary ban on the export of helium, effective immediately, in accordance with relevant provisions of the Foreign Trade Law.

Helium is a key element for the production of semiconductors, and is also used in the medical sector, for example to cool magnetic resonance imaging machines.

Since the start of the Iran war in late February, global helium supplies have been disrupted and prices have risen significantly.

China produces only about 15 percent of the total helium it uses, importing most of it from Qatar, which is estimated to generate a third of the world's supplies.

Analysts say China is seeking to protect its industries as the global supply of helium has become limited, and they estimate that Beijing is most likely introducing export controls to ensure supplies for local use, not for political reasons.

The move comes as China advances its self-sufficiency in chip manufacturing and artificial intelligence, as its technology race with the United States heats up.