Boeing in talks to sell up to 500 planes to China

US aviation giant Boeing is in talks to sell up to 500 aircraft to Chinese companies, Bloomberg News reported Thursday, citing sources familiar with the matter.

The deal would be a major win for the struggling US manufacturer, with company shares rising as high as 3.7 percent in pre-market trades, but up only around 0.2 percent at 11:20 am (1520 GMT).

Bloomberg’s sources said the deal would be contingent on Washington and Beijing coming to a longer-term agreement in their simmering trade war.

The Boeing deal would likely be a key facet of a US-China trade deal, according to Bloomberg, whose sources said Chinese officials had begun surveying domestic airlines for how many planes they would need.

“We don’t comment on speculation,” Boeing told AFP, when asked about the report.

Since taking office in January, President Donald Trump has hit trading partners around the world with new tariffs, seeking to address US trade deficits that he says are evidence of unfair practices.

Purchases of planes from Boeing, the largest US manufacturing exporter, often play a role in Trump’s deals promising to offset trade imbalances.

In July, the White House said that Japan had committed to buying 100 Boeing jets, and Indonesia 50 aircraft, as part of trade pacts negotiated to avoid steeper tariffs.

Trump has taken particular aim at China in his attempt to remake international trade.

Agencies