Caterpillar Inc and Navistar International Corp are reportedly in talks with China’s Anhui Jianghuai Automobile Co over a possible truck-making joint venture in China.

Reuters reported that the basics of an agreement have been worked out, but that discussions are continuing over the details.

Reuters noted that the heavy truck market in China is benefiting this year from the Chinese government’s economic stimulus measures.

Furthermore, analysts suggest that the Chinese heavy truck market is gradually moving away from cheap products towards more sophisticated and less polluting vehicles, offering an opportunity for foreign truck makers.