PepsiCo Inc Chairwoman and CEO Indra Nooyi receives a NCUSCR award, presented by CNBC's Michelle Caruso-Cabrera, in recognition of PepsiCo's support for the committee and a strong US-China relationship. Elsa Ruiz / for Ncuscr

PepsiCo Chairwoman and CEO Indra Nooyi (in blue dress) is joined by other guests at the NCUSCR gala. Elsa Ruiz / for Ncuscr

Nooyi: Great potential of working together

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:

"I've had the great pleasure of visiting China frequently - three times this year alone, in fact, and I'm scheduled to get out there a couple more times this year. But one trip in particular stands out for me.

"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.

"I learned about traditional Chinese medicine, and even had a personal traditional Chinese medicine consultation. I visited many towns, villages, and universities, had lunches and dinners, and long discussions with young people everywhere along the way.

"In these incredible conversations and experiences, I witnessed the tremendous promise of China and its people. And that trip illuminated for me the opportunity that PepsiCo saw when it was one of the first US-based companies to enter China more than 30 years ago.

"Today, we are privileged to be one of China's most successful food and beverage companies directly and indirectly employing 30,000 local associates across our system in China.

"We are very proud to stand with the National Committee on US-China Relations today in support of the friendship between the two countries. The value of this relationship is enduring. Strong economic ties between us are good for America, and good for China, and good for business.

"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."

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"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.

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"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.

"Let me give you an example. A staple of the Chinese breakfast table is the congee rice porridge. But as the lives of Chinese consumers get busier, they no longer have the time to cook congee the traditional way. And while it offers sustenance, adding whole grains to congee would improve the product's overall nutrition profile even more.

"So after studying local cuisine and local tastes, we created Quaker Oats Quick Congee. It has whole-grain oats, Chinese herbs; a time-saving, great-tasting version of this breakfast favorite that's made simply be adding hot water. Everybody loves us in China for this, and the congee varieties are specific to local taste preferences and incorporate elements of traditional Chinese medicine with ingredients like wolfberry, white fungus and red dates. Believe me, it's delicious.

"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."