US-based company Aluminium Corporation of America has signed a deal to sell the building material it makes from aluminium-coated pipe to China for a reported $3bn.
The company said it will use the cash to fund its expansion in the United States and build its facilities in China.
Aluminium is a vital building material, used in steel and aluminium-framed buildings, and is often used in products including furniture, furniture finishes and electrical panels.
The US Department of Commerce said the agreement will help the company expand its US operations and will create up to 1,000 jobs.
Algac is currently based in California.
Algemeiner reports that the aluminium pipe material, which is used in many products, including some of the world’s most popular electrical panels, is also used in the manufacture of many high-performance aircraft engines.
The Chinese company has been accused of dumping the material in favour of cheaper alternatives.
The Trump administration’s decision to scrap a separate trade deal with China that has allowed US firms to ship their goods to the country, which has imposed tariffs on many goods from the US, could further damage the relationship between the US and China.
The State Department did not immediately respond to Algemezer’s request for comment.
Al Jazeera’s Daniel Sandford, reporting from the White House, said the deal was a “significant milestone” and that the Whitehouse was confident that the agreement would lead to further economic growth and job creation.
The trade deal, known as the Trans-Pacific Partnership, was negotiated between the Obama administration and President Donald Trump’s administration, but was shelved under President Barack Obama.
Aljazeera’s Richard Galpin reported from Washington.