Despite realignment, China's exports are holding up well, with a shift away from processing toward more "normal" exports. Looking ahead, we expect this two-sided picture on China’s exports to be maintained. The reallocation of production to other countries will continue amid pressures to decouple or “de-risk” from China in a large share of advanced economies. At the same time, exports from largely domestically oriented supply chains are likely to continue to expand substantially. Indeed, China’s manufacturing sector seems comparatively well-placed in sectors relating to the green transition, while the demand for electronics and equipment from emerging market economies should remain solid.