Reply #28: Caterpillar chief warns over US-China trade row

[54anickel]

http://news.ft.com/cms/s/0c33d0d8-b9c7-11da-9d02-0000779e2340.html

The head of Caterpillar on Wednesday warned that deteriorating trade relations between the US and China could plunge the global economy into recession and called on Congress to back away from protectionist measures.

Jim Owens, chairman and chief executive of the US heavy equipment maker, spoke as Congress prepares to consider legislation that could impose a range of tariffs on Chinese exports in an effort to slim a trade deficit that ballooned to more than $200bn (€165bn, £114bn) last year.

Watched by Carlos Gutierrez, the US commerce secretary, Mr Owens also called on the US to grant China market economy status ahead of the 2016 deadline as a “carrot” for reforms such as “a meaningful revaluation” of the renminbi.

“Personally, I can think of no faster path to a worldwide recession than for the twin engines of the global economy...to turn against each other,” he told a manufacturing conference here. “And if some misguided piece of legislation like the Schumer bill gets through Congress, the chances of that happening are high.”

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