Skip to content

Companies Urge Chinese Government to Win over Libya’s Trust

The International Herald Leader published a report from Tivoli entitled “Chinese Companies in Libya in Critical Need of Help.” The article stated that the 7-month war in Libya inflicted immeasurable damage on Chinese companies in Libya and that the first step toward reconstruction of the companies is to learn how to deal with the new Libya government. Among the foes that they are facing, the Chinese companies are concerned that the position of Libya’s leaders toward China is not clear. “Some officials have even shown varying degrees of an anti-China tendency. Thus, Chinese-funded enterprises are at a relative disadvantage politically. Some of the Libya partners even half-jokingly warned that they will reduce cooperation with Chinese enterprises.” Further, China has few political advantages in comparison with the NATO countries that imposed the no-fly zone that led to the defeat of the Kaddafi regime. “Western companies are likely to have a larger piece of the pie during the upcoming Libya reconstruction.”

These Chinese companies recommended that the Chinese government offer low or zero interest rate loans to Libya as a means of winning the the new Libya government’s trust and support. For example, if China agrees to accept oil as in kind payment for its losses during the war and for the project funds that are overdue, it would be a win-win for all: Libya can proceed to complete unfinished projects; the Chinese government can win the trust of the new Libya and have access to more oil reserves; and Chinese companies in Libya can re-build the projects in Libya.

Source: International Herald Leader, November 21, 2011