New York. Us aviation company Boeing is in talks to sell more than 500 aircraft to Chinese companies, Bloomberg News reported.

The deal will be a major victory for American manufacturers struggling amid the global financial crisis. With the deal, the company’s shares rose as much as 3.7 per cent in pre-market trade, but will rise less than 1 per cent within about 15 minutes of Tuesday’s session.

According to Bloomberg sources, the deal will depend on a long-term agreement on the ongoing trade war between Washington and Beijing. According to Bloomberg, the Boeing deal will likely be a key aspect of the U.S.-China trade deal, whose sources say Chinese authorities have begun surveying domestic airlines on how many planes they need.

Since taking office in January, Us President Donald Trump has imposed new tariffs on the world’s trading partners to address the US trade deficit.

Buying aircraft from Boeing, America’s largest manufacturing exporter, will ease the imbalance caused by Trump’s trade policy.

In July, the White House pledged to buy 100 Boeing jets from Japan and 50 Indonesian jets. Trump has specifically targeted China in an effort to revive international trade.

Washington and Beijing have raised tariffs on each other’s products this year. Due to the controversy, at some point the retaliatory tax increase reached the level of three digits. This has led to a decline in business, including a temporary halt on delivery of Boeing jets.

However, both sides agreed to temporarily reduce tariffs in May and extended the deadline by 90 days. During Trump’s state visit in November 2017, Beijing agreed to buy 300 single and twin-aisle aircraft for more than $37 billion.

Boeing said its losses were lower in the second quarter compared to last year, with the largest aircraft supplied since 2018.