A spokesman of Foreign Ministry said on Wednesday that Libya was ready to compensate Chinese companies, raising the possibility that Chinese businesses that suffered losses during the country's unrest may receive some payment.

"We've noticed that the representatives from the Libyan transitional government, now the new government, have stated that the Libyan side is ready to compensate Chinese companies for their losses in Libya," Foreign Ministry spokesman Liu Weimin said.

"We appreciate such positive remarks from the Libyan side and will continue to encourage Chinese enterprises to actively engage in the post-war reconstruction in Libya."

Liu also said that China welcomes the formation of Libya's new government that was unveiled on Tuesday by the National Transitional Council.

"The establishment of Libya's interim government marks an important step forward in Libya's political transition process," he said.