China issues fierce warning over Australia's plans to reclaim control of Port Darwin after soured deal

Daily Mail​

6 days ago

China 's ambassador to Australia has warned the Albanese government against its plans to take back control of the strategically significant Port of Darwin - a move the ambassador slammed as 'ethically questionable'.
During the federal election campaign, both Labor and the Coalition promised to return the port to Australian ownership since the Northern Territory government brokered a $506million deal to lease the port for 99 years to Chinese firm, Landbridge in 2015.
The Labor government has said it is searching for a local buyer but would 'directly intervene' to broker a deal if necessary - though it is not clear how.
Ambassador Xiao Qian, who visited the port last week, published a statement on the Chinese Embassy's website on Sunday in which he defended the lease, which he said brought strong economic and social opportunities to the region.
'Such an enterprise and project deserves encouragement, not punishment,' he said.
'It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable'.
Security expert and Strategic Analysis Australia founder Michael Shoebridge told Daily Mail Australia the port will be the returning Prime Minister's first major foreign policy test - one neither he, nor Australia, can afford to get wrong.
'The Ambassador raising the port so quickly after the election shows he's acting on instructions from Beijing. Beijing doesn't want Darwin port out of the Chinese company's control and able to be used to support Australia's security,' he said.
'It's obvious this is a test for Prime Minister Albanese set by Beijing to see, "Will he back away from the commitment that he made during the election?"'
Mr Shoebridge said it seemed 'quite likely' the Prime Minister will back away from his commitment given he appeared to have only made the April announcement in a harried bid to preempt an identical promise from then-Opposition Leader Peter Dutton.
'Now Beijing and the Australian population get to see if the Prime Minister was serious or he was just making his way through the election campaign,' he said.
On questions of foreign policy, Albanese has repeatedly stated Australia will 'cooperate where we can, disagree where we must' while engaging on matters of national interest.
Mr Shoebridge said the Port of Darwin sale will give the Prime Minister his first opportunity to test the second leg of his statement.
'It will be probably the first case of Albanese applying his slogan. This is an example of "disagree where we must" and does the Prime Minister have the courage to actually disagree on the port?'
Ambassador Qian said the lease was secured through an 'open and transparent' bidding process and said the two countries ought to act as strategic partners.
'China and Australia are comprehensive strategic partners. The two sides should foster mutual trust, as mutually beneficial cooperation aligns with our shared interests,' he said.
'We hope the Australian federal government and the Northern Territory government will create a fair, transparent, and predictable business environment for Chinese enterprises operating in Australia.'
The controversial lease, which then NT Chief Minister Adam Giles described as 'a fantastic outcome for the Territory', has been criticised as a potential national security risk.
Landbridge is owned by Chinese billionaire Ye Cheng, but Albanese previously said the private firm is 'connected very directly' with Xi Jinping's Chinese government.
Famously, former Prime Minister Malcolm Turnbull was chided by then-US President Barack Obama over the leasing arrangement at a 2015 meeting.
Last month, John Elferink, who was the Northern Territory's attorney general at the time the lease was signed, defended his government's decision to broker the deal - claiming it only became controversial after the infamous Obama meeting.
'We heard nothing from the then-prime minister [Malcolm Turnbull] at that time, equally, we heard nothing from the Labor party… who remained totally silent on the matter,' he told the ABC.
'The only reason this ever became an issue was well after the event when [US] president [Barack] Obama made a comment when he was talking to… Malcolm Turnbull.
'That then belled the cat, so to speak. And since that time, this has been a percolating issue in the background.'
While Landbridge has repeatedly stated the port is not for sale, Labor representatives have confirmed the government has been meeting with potential buyers.
US private equity firm Cerberus Capital Mangement has emerged as a potential frontrunner in the bid to take back control of the port, though it has yet to confirm reports in The Australian it was preparing a purchase offer.
Non-executive director for Landbridge in Australia Terry O'Connor told Daily Mail Australia it was 'business as usual' at the port.
'Landbridge has not yet received any offers or engagement from the Government at any level,' Mr O'Connor said.
'Darwin port representatives escorted the Ambassador on a tour of the port during his recent visit to Darwin.
'Landbridge welcomes his comments in relation to the Port's operation and its contribution to the Northern Territory economy.'
The Australian government has ruled out cancelling the Chinese company's lease over the port after Albanese ordered a review of the agreement shortly after the 2022 election.
The Department of Prime Minister and Cabinet said, at the time, the review found a 'robust regulatory system' was in place at the port to manage risks to 'critical infrastructure' but said it would continue to monitor the port's security arrangements.