Australia faces potential diplomatic backlash over plans to regain control of Darwin port

Australian Government’s Port Darwin Lease Deal Sparks Concerns from Chinese Envoy

China’s ambassador to Australia has warned the Australian government against taking control of a port whose lease to a Chinese-owned company has been heavily scrutinized due to its strategic significance. Xiao Qian, China’s envoy to Australia, made the comments during his annual briefing to local media on Wednesday.

Landbridge Group, owned by Chinese billionaire Ye Cheng, has controlled Port Darwin since 2015 under a 99-year lease agreement worth $350 million. The Australian government reached the deal with Shandong province-based Landbridge in hopes of revitalizing the economy of the largely rural Northern Territory.

Prime Minister Anthony Albanese had pledged to return the port to Australian control during his election campaign last year, stating that the facility should be run by a local company or the government. In response to Xiao’s comments, Albanese reiterated his intention to return the facility to Australian control, describing it as being in the “national interest”.

Xiao stated that Beijing would take measures to defend Landbridge’s interests if the Australian government attempted to alter the lease agreement. He emphasized the importance of protecting Chinese companies’ legitimate interests without elaborating further.

The port deal has been surrounded by controversy over national security concerns and multiple government reviews have concluded there were no grounds to cancel or alter the agreement with the Chinese firm. China is Australia’s top trading partner, with two-way trade in 2024-25 totaling $218 billion.

Source: Al Jazeera