Taiwan and Korea's September trade surpluses draw a 1970s oil-shock comparison

Brad Setser says Taiwan posted a September trade surplus close to $25 billion and Korea one of $50 billion, or around $900 billion combined on an annualized basis. He says the increase over the past year exceeds half a point of world GDP and compares the effect on the global current account to oil in the 1970s. Reuters reports Taiwan's exports hit a monthly record for a second straight month, lifted by demand for AI chips and technology.