Latest news with #ChinaAustraliaRelations
News.com.au
3 days ago
- Business
- News.com.au
‘Enduring pitfalls': China's chilling warning over controversial Darwin Port deal
China has again warned Australia against plans to take back its strategic Port of Darwin, threatening the move would result in 'enduring pitfalls for the country.' 'If the Darwin Port issue is further politicised, or forcibly taken back under the pretext of so-called 'national security,' it would become another negative typical case that affects the healthy and stable development of China-Australia relations,' an anonymous editorial in the Chinese Communist Party-controlled Global Times states. The strategic economic and defence facility was leased in 2015 for $506 million to the Australian subsidiary of a privately owned Chinese company, the Landbridge Group. The 99-year deal was cemented by the then Country Liberal Northern Territory Government. The geopolitical fallout was immediate. The White House complained it had not been consulted. After all, its freshly committed US Marine presence in the Northern Territory relied on the port for support. Australia's regional neighbours raised their eyebrows: Hadn't Canberra been pressuring them to reject significant Chinese infrastructure money? Ten years later, both Labor and the Coalition went to the May 2025 Federal Election promising to take back Military facilities across the Top End are being upgraded 'to enhance the ability of the Australian Defence Force to project force,' Brigadier Matthew Quinn said at a sod-turning ceremony earlier this month. 'These critical upgrades follow recent works to enhance the main runway and taxiways, improving the capacity, security and resilience of RAAF Base Darwin.' It was just one $160 million piece of a massive international defence buildup across northern Australia. The cause: China's assertive territorial ambitions. 'Taking back the Port of Darwin from Landbridge Group would also symbolise a dangerous shift from commercial cooperation to military development,' the Global Times warns. 'The move of 'de-Sinicisation' aims to remove obstacles for the US to advance its militarisation in northern Australia.' Strategic and economic security 'It is well known that Darwin Port only became linked to so-called 'national security' and subjected to a wave of political and security scrutiny after so-called 'concerns' were voiced from Washington,' the Global Times editorial insists. All China-based and owned companies must have Communist Party Commissars on their boards. They must also readily hand over any and all information on their customers and deals to any government agency upon demand. US President Barack Obama broke the news of potential problems directly with then prime minister Malcolm Turnbull during an APEC meeting in November 2015. He asked that Washington be given a 'heads-up' over similar deals in future. Obama's cause for concern was obvious. Chairman Xi was, at the time, deeply engaged in building illegal island fortresses on sand banks claimed by Vietnam, the Philippines and Taiwan. His government was vocally asserting ownership over Japan and South Korea's islands in the East China Sea. Threats of invading Taiwan had already become commonplace. Darwin was even then a significant stepping stone for rapidly expanding US and allied military activities in northern Australia. 'As the Indo-Pacific becomes increasingly contested, supply chains become more vulnerable and coercive statecraft becomes more common,' argues Australian Strategic Policy Institute national security analyst John Coyne. 'Darwin's proximity to key maritime routes and regional partners makes it an indispensable asset.' Follow the money The purchase of the Darwin Port was touted as part of Chairman Xi Jinping's grand 'Belt and Road' vision of a Chinese-controlled trade network spanning the Pacific, Asia, the Middle East, Africa and Europe. The natural deep-water harbour is strategically positioned as a hub between the Indian Ocean, the South China Sea and the Pacific Ocean. And about 4.5 million tonnes of cargo and significant quantities of oil and gas pass over its piers each year. In 2015, the Foreign Investment Review Board headed by then federal treasurer Scott Morrison, decided against examining the proposed deal. The Defence Department, undergoing one of many ministerial transitions, had no objections. And the then minister for trade and investment, Andrew Robb, was ecstatic. '(It is) a powerful sign of the enhanced commercial relationship between Australia and China flowing from the China-Australia free trade agreement,' Robb declared in October 2015. Robb resigned from Parliament four months later and immediately took up a position as 'advisor' to the Landbridge Group. Now, both sides of politics are firmly in agreement: Make Darwin Australian again. During the 2025 election campaign, Prime Minister Anthony Albanese promised the port would be sold to an Australian operator. This is despite reports US equity firm Cerberus Capital, which has close ties to President Donald Trump's White House administration, is preparing to make a bid. Former opposition leader Peter Dutton went further, promising his Liberal-National Coalition would nationalise the asset under government ownership. But Beijing is biting back. The Global Times warned Tuesday that 'should the Australian government take the drastic step of forcibly taking back Darwin Port', this would 'undoubtedly' produce 'enduring pitfalls for the country'. Investor returns 'Whether the Port of Darwin becomes a hub of prosperous trade or the eye of a geopolitical storm is not a difficult choice, but it does test Canberra's strategic wisdom,' the Global Times editorial reads. The Communist Party editorial says its 2015 purchase had been 'timely assistance' to the Northern Territory at a time when Canberra 'wasn't interested'. 'From turning the port's operations from loss to profit and helping ease the Northern Territory government's debt crisis, to investing more than $A83 million and upgrading port facilities … and greatly contributing to local economic and social development, Landbridge Group's involvement has brought systematic and positive changes to Darwin Port,' it states. But concern over possible financial difficulties contributed to the port's prominence in the recent Federal Election. Landbridge Australia non-executive director Terry O'Connor said this week that the company had 'not yet received any offers or engagement from the (Australian) government at any level.' But he 'welcomed' comments by Beijing's envoy to Australia, Xiao Qian. Xiao issued a statement on Sunday after touring the port's operations. He insisted the lease had been purchased through 'an open and transparent bidding process, fully compliant with Australian laws and market principles'. 'It's very morally inappropriate to rent out the port when it is in the red and take it back once it is profitable,' he argues. Tuesday's Global Times editorial went one step further, warning that placing 'politics over the rule of law' sent a 'dangerous signal to global investors … especially in sectors like infrastructure and energy that require long-term investment'. 'The operation of Darwin Port is, at its core, a market-driven economic project and should operate within the framework of the rule of law and market principles,' it adds. But the world economic and security order has been upended since 2015, with Chairman Xi securing an unconstitutional third term and US President Trump vigorously pursuing an 'America First' agenda in the opening months of his second term. 'Darwin's development has long been framed as a national opportunity. It is now a strategic obligation,' Coyne argues. 'Australia cannot afford to leave its north underdone or underutilised. 'A sovereign, commercially viable, and strategically aligned marine industry in Darwin is no longer aspirational.'
Bloomberg
3 days ago
- Business
- Bloomberg
The Global Tussle For The Port of Darwin
On this week's Australia Podcast: Host Rebecca Jones speaks to government reporter Ben Westcott and senior editor Chelsea Mes about the strategic significance of the Port of Darwin. Never miss an episode. Follow The Bloomberg Australia Podcast today. In 2015, Chinese company Landbridge was awarded a 99-year lease over the Port of Darwin. Now, Australia wants to take it back and put it into local hands. This week on the podcast, Rebecca Jones speaks to Ben Westcott and Chelsea Mes about why Beijing is speaking out against that decision, and what role the US might play.
Daily Mail
5 days ago
- Business
- Daily Mail
China condemns Australia's push to reclaim Darwin Port lease
China's ambassador to Australia has warned the Albanese government against its trying to forcibly take back control of the strategically significant Port of Darwin - calling it 'ethically questionable'. During the federal election campaign, both Labor and the Coalition promised to return the port to Australian ownership after 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 (pictured right), who visited the port last week, published a statement on the Chinese Embassy's website on Sunday saying the leasing arrangement delivered 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 first major foreign policy test in the Albanese government's second term - 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 announcement the repossession in April to negate 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. 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.
Daily Mail
5 days ago
- Business
- Daily Mail
China issues fierce warning over Australia's plans to reclaim control of Port Darwin after soured deal
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.
Malay Mail
5 days ago
- Business
- Malay Mail
Beijing warns Canberra over Darwin port takeover from Landbridge, says deal must be honoured
SYDNEY May 26 — China's ambassador in Australia has condemned a push to block a Chinese company running a strategically important Australian shipping port, calling it 'ethically questionable'. The Landbridge group was granted a 99-year lease on the northern port of Darwin in 2015, a widely criticised decision that led to stricter scrutiny of major infrastructure sales. Prime Minister Anthony Albanese last month said the port should be 'in Australian hands' and vowed to buy back control of the 'strategic asset'. But ambassador Xiao Qian urged Canberra to honour its contract with Landbridge, a sprawling energy and infrastructure firm increasingly setting its sights beyond China. 'Such an enterprise and project deserves encouragement, not punishment,' he said, according to a transcript published on the Chinese embassy's website over the weekend. 'It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable.' Albanese had criticised Australia's former conservative government for 'flogging off' the port to 'a company with links to the Chinese government'. Darwin lies closest to Australia's Asian neighbours and has been used as a base for US Marines. At the time of the agreement, then-US president Barack Obama reportedly complained that Washington had not been told of Australia's plan to do business with Landbridge. — AFP
