China’s ambassador to Australia, Xiao Qian, warned Canberra against taking back control of the Port Darwin lease, criticizing the move as unethical and inconsistent with standard business practices. The statement addresses the Australian government's pledge to reclaim the facility from Landbridge Group, a company owned by Chinese billionaire Ye Cheng.
Landbridge secured the 99-year lease for the Northern Territory port in 2015 for $350 million, aiming to expand operations and revitalize the regional economy. However, Prime Minister Anthony Albanese committed to returning the facility to Australian government or local control during his election campaign last year, citing national interest concerns.
Ambassador Xiao Qian questioned the government’s motivation, asking during a media briefing if Australia sought to reclaim the asset now that it is reportedly profitable, referencing the initial lease when the port needed expansion capital. He further stated that Beijing would “take measures” to protect the legitimate interests of the Chinese firm should Australia attempt to forcibly alter the lease agreement.
Despite these diplomatic tensions and ongoing national security debates surrounding the deal, multiple government reviews, including one commissioned by the current administration, found no legal grounds to cancel or modify the contract with the Chinese entity. This suggests a complex legal and political challenge for the Albanese administration seeking to fulfill its promise.
Responding to the ambassador’s comments while visiting East Timor, Prime Minister Albanese reaffirmed his government's commitment to taking back control of the port, maintaining that the action serves the national interest. This exchange underscores the persistent fragility in the broader bilateral relationship between Canberra and Beijing.
China remains Australia’s foremost trading partner, with two-way trade valued at $218 billion in the 2024-25 fiscal year, despite previous strains over security and human rights issues. The future of the Darwin Port agreement represents a significant flashpoint in managing this vital, yet complex, economic partnership.
