China’s bearish headwinds range from a real estate crisis and deflation to weak consumer confidence and crashing stocks. Yet none of that necessarily means another country will be able to take China’s place as the world’s top manufacturing powerhouse.

In a note Monday, Eurizon strategists Stephen Jen and Joana Freire said there’s little evidence of de-globalization, even as US-China trade relations have deteriorated amid tariffs and geopolitical strains.

Other countries such as Vietnam and Mexico — the latter which surpassed China as the US’s top trade buddy in 2023 — have spearheaded a reordering of global trade flows.