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

The deal would be a major victory for the struggling US manufacturer, with the company's shares rising 3.7% in pre-market trading but rising less than 1% about 15 minutes after the start of the session on August 19.

Bloomberg's sources said the deal would depend on Washington and Beijing reaching a longer-term agreement in their simmering trade war.

The Boeing deal is likely to be a key element of the trade agreement between the US and China, according to Bloomberg. The publication's sources said that Chinese authorities have begun a survey among local airlines to determine how many aircraft they will need.

Since taking office in January, President Donald Trump has imposed new tariffs on trading partners around the world in an effort to address the US trade deficit, which he says is evidence of unfair practices.

Purchases of aircraft from Boeing, the largest manufacturer in the US, often play a role in Trump's deals, which promise to offset trade imbalances.

In July, the White House announced that Japan had committed to purchasing 100 Boeing aircraft and Indonesia 50 aircraft as part of trade agreements negotiated to avoid higher tariffs.

Trump has focused his attention specifically on China in his attempt to transform international trade.

Washington and Beijing imposed tariffs on each other's products this year, with the escalation at one point reaching prohibitive triple-digit levels and hampering trade. 

Washington and Beijing imposed tariffs on each other's products this year, with the escalation at one point reaching prohibitive triple-digit levels and hampering trade, including a temporary halt to Boeing aircraft deliveries.

However, in May, the two sides agreed to temporarily reduce tariffs and issued subsequent 90-day extensions while negotiating a longer-term agreement. | BGNES