Yum China Holdings, Inc. (NYSE: YUMC) saw its stock price surge 5.49% in Tuesday's trading session, as investor sentiment improved on renewed optimism regarding the US-China trade relationship. The stock's significant move came amid a broader market rally, with several other companies also experiencing notable gains.

The catalyst for this upward movement appears to be comments from Treasury Secretary Scott Bessent, who described the ongoing trade war between the United States and China as "unsustainable." Bessent's remarks suggested that a potential agreement between the two economic powers "was possible," signaling to markets that both sides might be motivated to find common ground. This development raised expectations for reduced tariffs and increased stability across markets, particularly benefiting companies with significant exposure to China, such as Yum China.

As the largest restaurant company in China, operating popular brands like KFC and Pizza Hut, Yum China stands to benefit significantly from any easing of trade tensions. The company's strong presence in the Chinese market makes it particularly sensitive to developments in US-China relations. Investors appear to be betting that improved trade conditions could lead to better operating conditions and potentially increased consumer spending in China, which would directly benefit Yum China's bottom line.