The US may lift its 21-year-old arms embargo against China following US President Obama’s request to terminate restrictions on the sale of C-130 cargo aircraft to Beijing.

The proposed sale, if it passes through both Houses of Congress, will mark the first US export of arms to China since 1989, according to People’s Daily Online.

President Obama has called on the House and Senate to terminate the suspensions on the sale, signalling friendly ties between the two nations.

The US has plans to balance an arms trade with China while restoring the stalled military relations and exchanges between the two countries.

China had completely restricted military exchanges in January 2010 following US plans to sanction the sale of a $6.4bn military package to Taiwan.