WASHINGTON, Jan. 30 (Xinhua) -- U.S. President George W. Bush on Tuesday defended the growing trade with China, vowing to push for more free trade deals.

    "I understand trade with China is considered controversial, I know that," Bush told 300 employees of Caterpillar Inc. in Illinois. "But I want to tell you something, if you're a Caterpillar worker, or a Caterpillar shareholder, what that has meant."

    "Opening China's market" had sent the bulldozer-maker's sales there up 40 percent, which helped create 5,000 new jobs in the United States, Bush said.

    Caterpillar has operations in 23 of the world's 24 time zones, and it is currently enjoying strong sales in China and other offshore markets, even as its U.S. sales have sagged in response to the steep falloff in housing starts.

    "In this company," Bush told the audience, "you've shown how to compete in a global economy."

    The president also urged the U.S. Congress, now controlled by the Democrats, not to retreat from free trade.

    "We're going to continue negotiating free trade agreements," he said. "I'm confident in our ability to sell American products and services overseas if the playing field is level."

    "The temptation is to say trade may not be worth it, let's isolate ourselves, let's protect ourselves," Bush said in the speech.

    "I know it would be a mistake for Caterpillar's workers to do that. I know it's a bad mistake for the country to lose our confidence and not compete," he added.