The Biden administration is in talks with Vietnam over a new arms agreement, Reuters reported.

The package could consummate the newly upgraded partnership between Washington and Hanoi on the sale of American F-16 fighter jets as Vietnam faces tensions with Beijing in the South China Sea, according to people familiar with a deal.

The work on the deal is still in progress and exact terms are yet to be worked out between the two countries.

The 2016 arms embargo has limited US defense exports to Vietnam, while Russia has supplied about 80% of the country’s military arsenal.