Romney’s Chinese Manipulation Pledge Has Risks, El-Erian Says

Labeling China a currency manipulator, as Republican Mitt Romney has pledged to do if elected president, “may have a disruptive impact” on global markets, according to Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian.

“There’s merit in saying that so far China hasn’t stepped up to its global responsibilities,” El-Erian, also the co-chief investment officer of the world’s largest manager of bond funds, said on Bloomberg Television’s “In the Loop” with Betty Liu. China “believes that its national responsibilities come ahead of its global responsibility. We also have to remember that from the Chinese perspective, they are operating in a global economy that is dominated by the west.”