Recent reports suggest that, apart from rare earth magnets for EVs, China is delaying the supply of critical chemicals used in some fertilizers. Now, China’s behaviour has a global impact as it controls the supply chains in a number of industries, and just not in India. But, there is another side to this story. When China exerts pressure, there usually is policy-level reaction in the affected countries. This may help some industries achieve a makeover. There are, however, some sectors where policy support has increased sharply in the last few years. Not because of China, but because they impact the lives of many. Interestingly, a number of these sectors and stocks are not covered by analysts who are skeptical about their ability to resolve their macro and micro troubles. This may be an opportunity. Along with the associated risk, of course.
