China halts investment in Libya

As allied forces stepped up air strikes to oust Muammar Gaddafi regime in Libya, China has decided to halt all its investments activities in the North African country amid reports that some of its companies may have suffered heavy losses due to the crisis.

China will not make new investments in Libya in the short term until the Libyan situation stabilises, an official with the Chinese Ministry of Commerce was quoted in the official media here as saying.

"Before the situation becomes clear, the exchanges between China and Libya in terms of trade, construction contracts and investment will be seriously affected. I am afraid that China is unlikely to make any new investments there soon," the official said.

China's investment in Libya is mainly in the energy and construction sectors.