Bloomberg News reported yesterday that the US airline giant is in talks to sell as many as 500 planes to airlines in China.
The deal is expected to be a major win for the struggling US manufacturer.
Boeing shares initially rose 3.7% in pre-market trading, but fell 0.2% by 11.20am.
According to Bloomberg sources, the deal hinges on a long-term agreement between Washington and Beijing, amid the ongoing trade war.
The talks are considered important in US-China trade relations, with Chinese authorities currently surveying domestic airlines to determine their actual needs for new aircraft.
Boeing aircraft purchases are often part of President Donald Trump's deals in his efforts to reduce the trade imbalance.
The last deal between Boeing and China took place in November 2017 during Trump's state visit when Beijing agreed to buy 300 planes worth more than $37 billion.
