Gaotu Techedu Inc., a Chinese education technology company, saw its stock surge 5.57% in pre-market trading on Tuesday. This movement was part of a broader rally in Chinese American Depositary Receipts (ADRs) on the back of escalating trade tensions between the United States and China, as well as the start of China's annual "Two Sessions" political event.

The rally was driven by China's retaliatory tariffs on a range of U.S. agricultural and food products, including chicken and cotton. This move came in response to the Trump administration's fresh tariffs on Chinese exports, further escalating the trade war between the two economic powerhouses. Additionally, the Chinese government announced plans to place 10 American companies, primarily in the defense and construction sectors, on an "unreliable list."

The "Two Sessions" event, which consists of the Chinese People's Political Consultative Conference and the National People's Congress, also garnered attention from investors. During this annual political gathering, policymakers are expected to set China's economic growth target and revise fiscal and inflation targets, providing guidance for the country's economic trajectory.