China’s ambassador to Australia says plans by the Albanese government to remove the Port of Darwin from Chinese ownership will put at risk future trade growth and force an intervention by Beijing.


Australia Eyes Darwin Reclaim, China Pushes Back

Australia said a security review of a 99-year lease held by Chinese company Landbridge on the northern port of Darwin, a key focus of its defence strategy, found it was "not necessary to vary or cancel the lease".

In a statement, the prime minister's department said: "Australians can have confidence that their safety will not be compromised, while ensuring that Australia remains a competitive destination for foreign investment".

It added that monitoring of security arrangements would continue around the northern port, Australia's closest to Asia, where Landbridge operates a commercial wharf and cruise ship terminal.

During a diplomatic dispute that is now easing, China had criticised Australia for blocking Chinese investment in infrastructure on national security grounds.

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The 99-year lease of the commercial port to Landbridge was put under scrutiny in 2021 by the Australian government as it boosted foreign investment screening.

After it won election in 2022, Prime Minister Anthony Albanese's Labor government launched a second review, involving defence, foreign affairs and security agencies.

The announcement the lease would not be varied or cancelled, comes ahead of Albanese's visit to Washington next week, and ahead of an expected visit to China this year.

Landbridge won a bidding process in 2015 to operate the port in a deal worth A$506 million ($390 million).

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The awarding of the contract to Landbridge by the Northern Territory government came just a few years after the United States posted the first of a rotating group of U.S. Marines in Darwin.

The size and scope of U.S. military rotations through northern Australia, and the strategic importance of northern bases, has been boosted after an Australian defence review said in April China is undertaking the largest military buildup of any country since the end of World War Two.

Peter Dean, director of foreign policy and defence at the United States Studies Centre in Sydney, said it was likely the government would seek to build a second port in Darwin harbour or nearby for military use.

"Naval assessments have been saying they want a dedicated wharf on their own," he said.

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Dean, one of the authors of Australia's Defence Strategic Review, said the port leased by Landbridge was physical infrastructure, so didn't pose the same security risk as a power grid or 5G network, areas where China has previously been blocked from investment.

"Absolute worst case scenario, you just nationalise it and take it back. We need to find areas where we can collaborate with China," he said.

Landbridge and Darwin Port said in a statement the decision "reaffirms our position that there is no basis for security concerns given the Port is operated as a commercial enterprise in accordance with Australian Law and the Port transaction documents".

Australia is pushing for China to lift trade blocks on its wine industry ahead of the Albanese visit, with a World Trade Organisation ruling on the dispute imminent.

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Australia said a security review of a 99-year lease held by Chinese company Landbridge on the northern port of Darwin, a key focus of its defence strategy, found it was "not necessary to vary or cancel the lease".

Australia said a security review of a 99-year lease held by Chinese company Landbridge on the northern port of Darwin, a key focus of its defence strategy, found it was "not necessary to vary or cancel the lease". In a statement, the prime minister's department said: "Australians can have confidence that their safety will not be compromised, while ensuring that Australia remains a competitive destination for foreign investment". It added that monitoring of security arrangements would continue around the northern port, Australia's closest to Asia, where Landbridge operates a commercial wharf and cruise ship terminal. During a diplomatic dispute that is now easing, China had criticised Australia for blocking Chinese investment in infrastructure on national security grounds. Also Read | China formally arrests Japanese man over ‘espionage’, what could be consequences? The 99-year lease of the commercial port to Landbridge was put under scrutiny in 2021 by the Australian government as it boosted foreign investment screening. After it won election in 2022, Prime Minister Anthony Albanese's Labor government launched a second review, involving defence, foreign affairs and security agencies. The announcement the lease would not be varied or cancelled, comes ahead of Albanese's visit to Washington next week, and ahead of an expected visit to China this year. Landbridge won a bidding process in 2015 to operate the port in a deal worth A$506 million ($390 million). Also Read | 'Parity not violation of international norms': India hits back at Canada, says it upholds Vienna Convention The awarding of the contract to Landbridge by the Northern Territory government came just a few years after the United States posted the first of a rotating group of U.S. Marines in Darwin. The size and scope of U.S. military rotations through northern Australia, and the strategic importance of northern bases, has been boosted after an Australian defence review said in April China is undertaking the largest military buildup of any country since the end of World War Two. Peter Dean, director of foreign policy and defence at the United States Studies Centre in Sydney, said it was likely the government would seek to build a second port in Darwin harbour or nearby for military use. "Naval assessments have been saying they want a dedicated wharf on their own," he said. Watch | Israel-Palestine War: Former Israeli PM Yair Lapid given the option to join the war cabinet × Dean, one of the authors of Australia's Defence Strategic Review, said the port leased by Landbridge was physical infrastructure, so didn't pose the same security risk as a power grid or 5G network, areas where China has previously been blocked from investment. "Absolute worst case scenario, you just nationalise it and take it back. We need to find areas where we can collaborate with China," he said. Landbridge and Darwin Port said in a statement the decision "reaffirms our position that there is no basis for security concerns given the Port is operated as a commercial enterprise in accordance with Australian Law and the Port transaction documents". Australia is pushing for China to lift trade blocks on its wine industry ahead of the Albanese visit, with a World Trade Organisation ruling on the dispute imminent. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Australia says 'not necessary' to cancel Chinese firm's lease on Darwin port

Australia&nbsp;is reviewing the 99-year lease of a commercial and military port in the country's north to a Chinese firm, a government source said on Monday, a move that could further inflame tensions between Beijing and Canberra.

Australia&nbsp;overhauled its foreign investment laws late last year, giving the government the retrospective power to impose new conditions or even force a divestment on deals that have already been approved.

Defence officials are looking into whether the Landbridge Group, which is owned by Chinese billionaire Ye Cheng, should be forced to give up its ownership of Darwin Port on national security grounds, the source told Reuters.

Landbridge, which has close ties to the Chinese military according to media reports, won a bidding process in 2015 to operate the port in a deal worth A$506 million ($390 million).

"Advice has been sought on the port and that will go to national security committee in due time," a government source said. The source declined to be named as he is not authorised to talk to the media on the subject.

The Sydney Morning Herald newspaper, which first reported the review, quoted Defence Minister Peter Dutton as saying the government would "look at options that are in our national interests after that.”

The defence department, the&nbsp;Australian offices of Landbridge and the Chinese embassy in Canberra did not respond to requests for comment.

The awarding of the contract to Landbridge by the Northern Territory government came just a few years after the United States posted the first of a rotating group of US&nbsp;Marines in Darwin. The posting was part of former President Barack Obama's pivot to Asia following China’s increased assertiveness in the region and Obama reportedly expressed his displeasure at not receiving a heads up on the port deal.

Touted as&nbsp;Australia’s front door to Asian markets, and a potential hub for resources and agriculture exports, Darwin is the centerpiece of the government's plan to develop its remote north.

The review comes at a low point in relations between&nbsp;Australia&nbsp;and China, which have fluctuated for years. Relations deteriorated again last year after Canberra called for an international inquiry into the origins of the COVID-19 pandemic, prompting trade reprisals from Beijing.

Morrison has said the new foreign investment powers, which were used for the first time in April, were needed to ensure consistency in foreign relations and were not aimed at any one country.

The government has so far cancelled four deals using the new law, two of which were Belt and Road initiatives struck by Victoria state with the Chinese government. The other two deals were education agreements with Syria and Iran, also with Victoria state.

The federal government said the Belt and Road cancellations were needed to ensure foreign policy consistency. A Chinese foreign ministry spokesman responded by urging&nbsp;Australia&nbsp;to abandon its "Cold War mentality and ideological bias" and "immediately correct its mistakes and change course".

Australia is reviewing the 99-year lease of a commercial and military port in the country's north to a Chinese firm, a government source said on Monday, a move that could further inflame tensions between Beijing and Canberra.

Australia is reviewing the 99-year lease of a commercial and military port in the country's north to a Chinese firm, a government source said on Monday, a move that could further inflame tensions between Beijing and Canberra. Australia overhauled its foreign investment laws late last year, giving the government the retrospective power to impose new conditions or even force a divestment on deals that have already been approved. Defence officials are looking into whether the Landbridge Group, which is owned by Chinese billionaire Ye Cheng, should be forced to give up its ownership of Darwin Port on national security grounds, the source told Reuters. Landbridge, which has close ties to the Chinese military according to media reports, won a bidding process in 2015 to operate the port in a deal worth A$506 million ($390 million). "Advice has been sought on the port and that will go to national security committee in due time," a government source said. The source declined to be named as he is not authorised to talk to the media on the subject. The Sydney Morning Herald newspaper, which first reported the review, quoted Defence Minister Peter Dutton as saying the government would "look at options that are in our national interests after that.” The defence department, the Australian offices of Landbridge and the Chinese embassy in Canberra did not respond to requests for comment. The awarding of the contract to Landbridge by the Northern Territory government came just a few years after the United States posted the first of a rotating group of US Marines in Darwin. The posting was part of former President Barack Obama's pivot to Asia following China’s increased assertiveness in the region and Obama reportedly expressed his displeasure at not receiving a heads up on the port deal. Touted as Australia’s front door to Asian markets, and a potential hub for resources and agriculture exports, Darwin is the centerpiece of the government's plan to develop its remote north. The review comes at a low point in relations between Australia and China, which have fluctuated for years. Relations deteriorated again last year after Canberra called for an international inquiry into the origins of the COVID-19 pandemic, prompting trade reprisals from Beijing. Morrison has said the new foreign investment powers, which were used for the first time in April, were needed to ensure consistency in foreign relations and were not aimed at any one country. The government has so far cancelled four deals using the new law, two of which were Belt and Road initiatives struck by Victoria state with the Chinese government. The other two deals were education agreements with Syria and Iran, also with Victoria state. The federal government said the Belt and Road cancellations were needed to ensure foreign policy consistency. A Chinese foreign ministry spokesman responded by urging Australia to abandon its "Cold War mentality and ideological bias" and "immediately correct its mistakes and change course".

Australia reviewing lease of Darwin port to Chinese firm: Sources

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Australia Eyes Darwin Reclaim, China Pushes Back

Australia says 'not necessary' to cancel Chinese firm's lease on Darwin port

Australia reviewing lease of Darwin port to Chinese firm: Sources