Core Viewpoint - The supply side is expected to undergo structural optimization, with domestic policies frequently emphasizing the need to "reduce internal competition" and international chemical companies facing uncertainties due to rising raw material costs and capacity exits [1] Group 1: Domestic and International Factors - Domestic policies are increasingly focused on supply-side reforms, particularly the concept of "reducing internal competition" [1] - Internationally, chemical companies in Europe and the U.S. have experienced shutdowns and capacity exits due to rising raw material costs and competition from Asian production [1] Group 2: Long-term Outlook for China's Chemical Industry - In the long term, China's chemical industry holds a competitive advantage due to significant cost benefits and ongoing technological advancements, positioning Chinese companies to fill gaps in the international supply chain [1] Group 3: Investment Opportunities - The chemical sector leader ETF (516220) tracks a specialized chemical index (000813) that includes listed companies in fine chemicals and new materials, reflecting the overall performance of high-growth and high-tech segments within the chemical industry [1] - Investors without stock accounts can consider the Guotai Zhongzheng Sub-Sector Chemical Industry Theme ETF Connect C (012731) and A (012730) for exposure to this sector [1]