Shares of Chinese streaming platform iQiyi Inc. (IQ) surged 5% in intraday trading on Friday, outperforming the broader market. The stock's rally can be attributed to two key factors: easing trade tensions between the U.S. and China, and a well-received upgrade to iQiyi's membership program.

On the trade front, President Donald Trump expressed reluctance to impose tariffs on China during a television interview, suggesting that a trade war between the world's largest economies could be avoided. Specifically, Trump said, "We have one very big power over China, and that's tariffs, and they don't want them. And I'd rather not have to use it." His comments provided relief to Chinese companies, including iQiyi, which saw its American Depositary Receipts (ADRs) rise in pre-market trading.

Separately, iQiyi announced an upgrade to its Diamond VIP membership, allowing members to unlock additional content without needing extra membership points or purchases. This move was seen as a positive step in enhancing the overall membership experience, which could lead to higher subscriber retention and revenue growth. As a leading online entertainment platform in China, iQiyi's ability to continuously improve its offering is crucial in the highly competitive streaming market.