China is quietly extracting itself from a US helium ‘stranglehold’, experts say

In recent years, China has been discreetly reducing its dependence on US-sourced helium – a rare and strategic resource widely used in medical and hi-tech industries, including semiconductors and quantum computers.

The endeavour has involved a series of measures including diversifying overseas supplies and increasing domestic production with scientific and technological breakthroughs.

The strategy appears to be working, according to experts.

China used to depend on the US for most of its helium. “If China faces a shortage of helium, the impact on technology would be significant because in many areas, helium is hard to replace,” said Jost Wuebbeke, managing partner of Sinolytics, a research-based consultancy with offices in Berlin and Beijing.

But now, if the US attempts to use helium as leverage in a tech war with China, the potential impact would be “marginal”, said Wuebbeke, whose research focuses on China’s economy and industrial policy.

Today the US accounts for less than 5 per cent of China’s helium imports, while Qatar accounts for almost 90 per cent, with an increasing amount of helium also coming from Russia, which is expanding its capacity, he said.