China hails Libya rebels 'dialogue partners'

China has announced that the Libyan rebel council had become an "important dialogue partner" - a shift that could complicate Muammar Gaddafi's efforts to hold on to power.

Chinese Foreign Minister Yang Jiechi made the comments as Gaddafi's forces succeeded in landing rockets in the rebel-held city of Misrata for the first time in several weeks, suggesting he remains far from giving up the fight.

Yang was speaking to Mahmoud Jibril, diplomatic chief of the National Transitional Council based in Benghazi in eastern Libya, during a visit to Beijing, according to a statement on the Chinese Foreign Ministry's website www.mfa.gov.cn

China's reticence to fully back Western efforts to bring down Gaddafi is seen by analysts as one factor sustaining the Tripoli government's defiance of a NATO military campaign.

At least eight European and Arab governments have said they recognise the LNC as the sole legitimate representative of the Libyan people. The Chinese shift could indicate it now sees Gaddafi's days as numbered.

Although no one was hurt in the Misrata attack, it dampened the relative sense of security among residents, who had believed the siege on their city was broken after rebels drove out loyalist forces in mid-May. Two more landed in open areas.

Fighting has been largely on Misrata's far western and eastern edges, where the rebel army is sustaining heavier casualties by the day from the better equipped and better trained government forces.

Rebels have been trying to advance west towards the town of Zlitan, where Gaddafi's soldiers are imposing a tight siege. Libyan television said on Wednesday that "dozens" of people were killed in Zlitan after NATO naval ships shelled the town.

The report could not be independently verified because foreign reporters have been prevented from entering Zlitan.

NATO only comments on its Libya operations the day after.

If the Libyan television report is confirmed, it could further complicate the mission of the NATO-led military alliance, whose credibility has been questioned after it admitted on Sunday killing civilians in a Tripoli air strike.

A rebel spokesman called Mohammed told Reuters from Zlitan that NATO had been hitting government military targets in the town on an almost daily basis. He said Gaddafi's soldiers used their artillery positions in Zlitan to fire salvoes towards Misrata.

NATO said on Sunday its strike destroyed a house in Tripoli. Libyan officials said nine civilians died. The Libyan government said on Monday that 19 people were killed in another air strike, raising more questions about the military mission.

Libyan officials say NATO forces have killed more than 700 civilians, but have not presented evidence of such large numbers of civilian deaths and NATO denies them.

In a further blow to Libya's leaders, the United States yesterday blacklisted nine companies owned or controlled by Gaddafi's government. The sanctions prohibit U.S. transactions with the companies, including the Arab Turkish Bank, North Africa International Bank and North Africa Commercial Bank.