Excerpts of speech to the National Committee on United States-China Relations by Indra Nooyi, chairwoman and CEO of PepsiCo Inc, on Monday, Oct 8:

"Three years ago, I spent a few weeks, in one shot, traveling around China, trying to get a better sense of the country, and better sense beyond the big cities I visited previously. I spent afternoons in the homes of some of our Chinese consumers, sharing tea, snacks, ideas.

"Most importantly, I came away from that amazing trip more convinced than ever that all global business leaders need to spend the time to understand China better. I continue to work toward a better understanding for myself, and along my journey, I've realized three important truths which I'd like to share with you.

"First, as a nation, the United States is in competition for China, not just with China. Economic partnership is not a zero-sum game; one success need not be at the expense of the other. Instead, we should see our relationship as a tremendous opportunity to ensure economic progress for both China and the United States while benefiting millions more around the world."

"The second truth is that to compete for China, all of us must evolve the current model of how we operate in China, working towards solutions that are win-win for all sides. With the expertise that many global companies bring to the table, they can grow their businesses in China while helping to enrich China's economy in a way that also meets the needs of the Chinese people.

"Third, a critical part of evolving how we operate in China is for global companies like ours to become truly local, understanding and reflecting local culturally based tastes and preferences. It's the approach we take in China and in every market in which we operate around the world.

"The reason we can create such locally relevant options is that PepsiCo China is overwhelmingly staffed and run by Chinese. In fact, this fall we are opening our largest research-and-development center outside of the United States in Shanghai, and we're going to develop products geared for Asian tastes, especially Chinese tastes, because the only tastes that matter are indeed the local tastes. Imagine the impact if we all do business in China, with China, for China, promoting the spirit of collaboration and working toward mutually beneficial, sustainable solutions with a deep respect for local needs.

"That is how we all will win in the end. China and the United States are two great countries with incredible promise and potential that can be further unleashed in cooperation with one another. The promise of what we can achieve together, I believe, is unlimited. We have the great opportunity together to make the world a better place, and shape our future success. I hope tonight we fully realized the positive force we can be - united and committed to collaboration."

(China Daily 10/12/2012 page8)