Trip.com Group Limited (TCOM) saw its stock surge 5.13% in pre-market trading on Monday, riding a wave of optimism surrounding improved US-China trade relations. The company, along with other Chinese ADRs and ETFs, is benefiting from reports of "substantial progress" made during recent trade talks between the two economic powerhouses.

The positive momentum comes after US and Chinese officials concluded two days of negotiations in Switzerland, aimed at de-escalating trade tensions. Both countries agreed to major reductions in tariffs for a 90-day period, with the US lowering its combined 145% levies on most Chinese imports to 30%, while China will drop its 125% duties on US goods to 10%. This development has sparked a rally across Chinese stocks traded in the US market, with some Chinese ETFs rising by as much as 9-10%.

As a major player in China's online travel industry, Trip.com Group stands to gain significantly from improved US-China relations and potential easing of trade restrictions. The company's stock movement aligns with broader market trends, as other Chinese tech giants and e-commerce platforms also experienced substantial gains. Investors appear to be betting on a more stable and cooperative economic environment between the US and China, which could lead to increased cross-border travel and business activities, potentially benefiting Trip.com's operations in both domestic and international tourism sectors.