China Issues Warning Over Australia’s Plan To Take Back Darwin Port

China has warned Australia against reclaiming control of the Port of Darwin, saying it could take measures to protect the Chinese company that runs the facility if the lease is forcibly changed.

The warning came from China’s Ambassador to Australia, Xiao Qian, during his annual New Year media briefing.

Reports said he criticised Australia’s plan, questioning why the government wanted to take back the port only after it became profitable under Chinese management. Xiao reportedly added that Beijing would protect Landbridge’s interests.

Landbridge Group, owned by Chinese businessman Ye Cheng, has operated the Port of Darwin since 2015 under a 99-year lease worth A$506 million. The deal was intended to expand the port and boost the economy of Australia’s Northern Territory.

The port issue resurfaced during Australia’s 2025 federal elections, when both major parties promised to return the facility to Australian control.

Prime Minister Anthony Albanese later reaffirmed that the port should be managed by an Australian company or the government, citing national interest. He repeated this position during a visit to East Timor this week.

According to reports, Landbridge turned the port’s losses of A$37 million into a profit of A$9.6 million last year, and Xiao questioned why Australia wanted to take it back only after it became profitable.

Darwin Port, on Australia’s northern coast, is strategically important. While relatively small, it has been used by the US military for regional operations.

The Chinese lease of the port had previously drawn criticism from the United States, with former President Barack Obama expressing concern.

Australian government reviews, including one led by Prime Minister Albanese, reportedly found no legal or security reason to cancel or change the lease.

However, authorities said Landbridge had not completed some promised investments and had financial problems in other projects.

Per media reports, commercial talks about the port and its lease are ongoing, but no final decision has been made.

China remains Australia’s largest trading partner, with two-way trade worth A$218 billion in 2024–25. While relations have improved in recent years, disagreements over security and foreign investment continue, keeping Darwin Port in the spotlight.

References: Al Jazeera, supplychainbrain

Source: Maritime Shipping News