A serious disagreement is growing between China and Australia over the future of Darwin Port.

Ambassador Says Australia’s Move Is “Ethically Questionable”

The Chinese Ambassador to Australia, Xiao Qian, has strongly criticized Prime Minister Anthony Albanese’s plan to take back control of the port from a Chinese company.

The strategy is “ethically questionable,” according to Ambassador Xiao, who also charged that the Australian government is breaching a legal agreement. In a statement released by the Chinese Embassy, he reminded Australia that a 99-year lease had already been signed in 2015. The port was leased to Landbridge Group, a private Chinese company, for $506 million.

At that time, the port was not making money. Since Landbridge took over, the ambassador said, the company made large investments and helped turn the port’s finances from loss to profit. He said the port is now helping the local economy grow and supporting community development in the Northern Territory.

Mr. Xiao stated, “Such an enterprise and project deserves encouragement, not punishment.”  “It is unfair to try to reclaim the port now that it is successful,” he continued.  “Leasing the port when it was not profitable and then trying to reclaim it once it is profitable is unethical,” he stated.

China Urges Australia to Respect Business Agreements

The Chinese Ambassador stressed that Landbridge won the lease through an “open and transparent bidding process.” He believes that since the lease was agreed upon legally, it should be honored by all sides.

Xiao Qian also reminded Australia that both countries are supposed to be “comprehensive strategic partners.” He said it is important for Australia and China to trust each other and work together.

The envoy expressed the expectation that the Australian side will take an unbiased stance on the Darwin Port project, fulfill its contractual obligations, and accept the independent choices made by companies in accordance with development requirements.

Additionally, he submitted a request to the governments of the Northern Territory and Australia.  He requested that they establish a business climate that is “fair, transparent, and predictable” for Chinese enterprises operating in Australia. This includes making sure that companies like Landbridge can operate without facing political pressure or unfair treatment.

This statement comes just after Australian Prime Minister Anthony Albanese repeated his election promise to take back control of the Darwin Port. He even said the government may directly intervene if it cannot find a new buyer. This means the Australian government is considering buying the port back from Landbridge if the company does not agree to sell it to someone else.

Landbridge Says It’s Not Selling the Port

While the political battle continues, Landbridge Group has said that the port is not for sale. The company has also confirmed that it has not received any official messages or offers from the Australian government.

Landbridge’s Australian non-executive director, Terry O’Connor, stated on Monday that port operations are proceeding according to plan.  “At Darwin Port, we are continuing to concentrate on expanding our operations, so it is business as usual,” he stated.

O’Connor also noted that Ambassador Xiao had visited the port during his recent trip to Darwin. During the visit, Landbridge officials gave the ambassador a tour and explained how the port works and how it supports the region’s economy.

O’Connor continued, “Landbridge appreciates his remarks regarding the Port’s operations and its economic impact on the Northern Territory.”

The push to take back the port’s ownership began after some concerns were raised in Australia. Some officials and experts believe that such an important piece of infrastructure should not be owned by a company from another country. They are especially concerned because Darwin Port plays a major role in trade, shipping, and even defence.

In response to these concerns, Luke Gosling, Australia’s special envoy for defence and northern Australia, confirmed that he had met with potential new buyers. He said he wanted to ensure that any deal would give a “good return on investment” for the Chinese owners, meaning Landbridge would not lose money if it sold the port.

The Darwin Port was originally leased by the Northern Territory’s Country Liberal government in 2015. Reports at the time suggested the federal government had been surprised by the decision, which was made without much national discussion.

Now, nearly a decade later, the lease agreement is once again making headlines. China is calling on Australia to stick to the original deal, while Australia is reviewing its options. Both sides are standing their ground, and the matter is still unsolved.