"The economy's current account is in long-term decline and the future growth of the economy will be increasingly dependent on foreign capital," said the investment bank in a report on Tuesday.
The last time China had a current account deficit was in 1993. A country may need to operate on borrowed means when it runs into a deficit as the total value of goods, services and investments it imports exceeds the total value it exports.
Unlike 1993, however, the investment bank predicts that the shift toward a shortfall might be "sustained," setting the world's second biggest economy on a path to becoming more reliant on foreign capital from 2020 onward.
China's current account surplus has slipped from 10.3 percent of its GDP in the third quarter of 2017, to just 0.4 percent in the third quarter of 2018. This year, the current account deficit could be 0.3 percent of its GDP, and widen to 0.6 percent in 2020, the investment bank predicted.
That pales in comparison to its golden days more than a decade ago, when China had a huge current account surplus of $420 billion, or 9.9 percent of its GDP in 2007.