Caterpillar chief warns of protectionism

ROSEMONT, Ill., March 22 (UPI) -- A top U.S. manufacturing executive Wednesday warned Congress to cut its anti-trade rhetoric and focus on keeping China ties positive.

Jim Owens, Caterpillar CEO and keynote speaker at the National Manufacturing Week meeting, said he could think of "no faster path to a worldwide recession than for the twin engines of the global economy -- the United States and China -- to turn against one another.

"Both countries need to make an extra effort to ensure that we treat each other with mutual respect. Rather than threatening protectionism, leaders must redirect their energies toward improving competitiveness and opening markets," he added.

Owens called on U.S. lawmakers to reject bills to impose tariffs on Chinese imports. Instead, he suggested China would be more responsive to the trade concerns of the United States if China had a greater role in multilateral economic organizations.

He also suggested the United States should consider granting China market economy status prior to the current 2016 timeframe, contingent on China making major changes to the way it regulates its economy -- including improving intellectual property protections, getting a market-sensitive currency valuation and boosting reliance on market-based principles.