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Boeing ( BA ) is a potential major beneficiary of U.S. trade negotiations with China if the current 90-day tariff reduction leads to a broader deal between Washington and Beijing, airline industry analyst Visual Approach Analytics said Thursday.

China has an airplane supply problem, and new plane capacity coming into the country is down 75% from its 2018 peak, before the 737 MAX model was grounded amid safety concerns, the firm said. Meanwhile, the Trump administration wants U.S. trade partners to buy more American-made goods—so much so that trade imbalances were used to calculate the "reciprocal" tariff rates imposed on a country-to-country basis last month.

Alongside the mutual reduction in tariffs Monday, China reportedly withdrew a ruling imposed in early April barring its airlines from taking delivery of Boeing planes. Shares of Boeing have climbed 6% this week, including an 0.6% intraday rise Thursday.

"We believe Boeing is in a prime position to walk away as the big winner in a long-term trade deal with China," the analysts said. "That doesn't mean a deal is done or imminent, rather that the stage is set."

Or, put more simply: "China needs airplanes. Boeing makes airplanes. The U.S. wants a political win on exports. Boeing is the easiest way to offset some trade imbalance in big chunks."

Boeing Recently Inked Aircraft Deals With Qatar Airways, British Airways Parent

During a four-day trip to the Middle East, President Donald Trump said Qatar Airways agreed to buy as many as 210 Boeing 787 Dreamliner and 777X aircraft. This comes as Trump has rebuffed criticism for saying his administration would accept a luxury Boeing 747-8 jet as a gift from Qatar to be used as the new Air Force One.

Last week, U.S. Commerce Secretary Howard Lutnick said a U.K. company would buy $10 billion worth of Boeing aircraft as part of a trade deal between the two nations. Shortly thereafter, British Airways owner IAG said it had ordered 32 787-10 planes.

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