China's income-doubling goal conducive to Caterpillar's expansion (2)

As China is in transition to a new government, Rapp expects to see that the government continues to invest in infrastructure and move toward urbanization, which will serve as fundamental drivers for Caterpillar's Chinese growth in the long term.

Caterpillar has boosted the number of its manufacturing facilities in China to 22 from 17 earlier in the year. Four new facilities are currently under construction in the country.

Rapp believes China's growth has currently bottomed out, and he projected modest growth in the country in 2013. His firm's data showed an increase in the hours of utilization of its machines from its customers, which indicated improvement in the market.

The construction and mining sectors have been hard-hit amid the country's slowdown. China's third-quarter growth dropped to a seven-quarter low of 7.4 percent due to flagging exports and government tightening measures to cap inflation.

In an effort to boost its presence in China, Caterpillar is showcasing nearly 50 machines, including six new products, at the biennial Bauma China Show, marking its largest display ever at the expo.

Caterpillar's global revenue in 2011 soared 41 percent year on year to exceed 60 billion U.S. dollars, with revenue estimated to exceed 70 billion U.S. dollars in the year.

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