China makes moves to reopen economic ties with Libya, 13 years after suspending trade

Beijing and Tripoli are rebuilding ties after China pulled investors out in 2011, but Libya’s political divide could prove a problem

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Libya has struggled through years of internal violence and political instability since the 2011 revolution. But now the first steps are being taken to open up the North African nation to Chinese investors again. Photo: AP

Published: 4:00pm, 23 Jun 2024

Before the 2011 revolution that toppled Muammar Gaddafi and led to a bloody civil war in Libya, China had vast interests in the oil-rich North African nation.

At the time, 75 Chinese companies controlled 50 large projects with a contract value of more than US$20 billion, according to estimates by China’s ministry of commerce.

Spanning oil, construction, railways and telecoms, the extensive Chinese investments came to an abrupt halt after some of the companies were raided and dozens of workers were seriously injured.

Beijing acted fast to evacuate its citizens from the turmoil. During the crisis, 35,860 Chinese nationals were pulled out of the country – officially the largest overseas evacuation since the founding of the People’s Republic in 1949.

Then, as the security situation worsened, China suspended new investments, something which has remained relatively unchanged – until now.

Currently Libya is split between two administrations: the internationally recognised Government of National Unity (GNU) based in Tripoli in the west of the country, and the rival Government of National Stability (GNS) which is aligned with renegade general Khalifa Hifter of the Libyan National Army in Benghazi in the east.

Recently, signs have begun to emerge that China is ready to return to the energy-rich, yet still politically divided, country.