for the first time in its modern history, China's current account balance for the first half of the year had turned into a deficit. And while the full year amount reverted back to a modest surplus, it was only a matter of time before one of the most unique features of China's economy - its chronic current account surplus - was gone for good.
Then, a few months later also in 2018, UBS wrote that the upcoming loss of China's current account cushion would soften domestic activity, which coupled with the emerging US-China trade war, would mean that "
for the first time in 25 years, China would have to make a choice between external stability and growth." This was followed by the Wall Street's Journal bringing attention to this topic, calling it a "tectonic shift" in China's economy, which has largely gone unnoticed by investors, and which is "quietly beginning to upend the global financial system."