The Chinese Foreign Ministry has admitted that Muammar Gaddafi's envoys attempted to buy weapons from China, but says no arms were sold.

Abdel Raham Busim, a spokesman for the new Libyan government, said it is is documenting a meeting between Gaddafi's officials and representatives from Chinese traders believed to have sold the weapons, Reuters and AP reported.

The documentation is expected to support the new government's accusation that China shipped arms to Gaddafi's forces via Algeria.

Chinese Foreign Ministry spokeswoman Yu Liang denied such shipments ever happened, said no contracts were signed and that China is firm in its adherence to the United Nation's ban on furnishing military supplies to the Gaddafi government.

But Busim insisted a July invoice was recovered from Libyan's files specifying a purchase worth $200 million of Chinese ammunitions, pistols, missiles, and rocket launchers. Although it does not indicate that a shipment was made or paid, there is other evidence that will prove China's involvement, he told Reuters.

Libya is contemplating legal action against Beijing and other suppliers at the United Nations. But representatives of National Transitional Council were quick to admit the new government needs major allies like China, and may do well to just bury the hatchet.

Libyan rebel official Jalal el-Gallal was quoted on a yahoo.com news saying the new government will consider strengthening ties with China, which abstained from the U.N. resolution to authorize force against Gaddafi regime.

"We have to acknowledge that China is a superpower," Gallal told yahoo.com reporters, "We hope that the Chinese will continue to assist us. Irrespective of what has taken place, we need them in our side."

China's Defiance?

Meantime, China has yet to extend official recognition of National Transitional Council as Libya's new government. While Beijing recently opened its communications lines with NTC, it also hosted Gaddafi's foreign minister in Beijing.

China has an established reputation as a seller of small arms to many nations. It also furnished weapons to both Iran and Iraq during their 1980-88 war.

Last week, after obtaining a copy from Gaddafi's files about purchasing weapons, The Toronto Globe and Mail reported that Gaddafi's officials had negotiations with Chinese arm traders such as China Precision Machinery Import and Export Co., China North Industries Corporation, and China Xinxing Import and Export Co.

When asked for comments, none from the Chinese companies was available.