U.S. companies will rely less on China and move manufacturing closer to home as globalization splinters, El-Erian says.

For three decades, businesses and governments around the world operated under the assumption that economic and financial globalization will continue apace. As the international order has come under strain in recent years, the concept of deglobalization — the delinking of trade and investment — has increasingly gained traction with households, companies, and governments. But the available data suggest that globalization is not ending so much as it is changing.

Not too long ago, it seemed that there were no limits to global…