Relations between China and Australia are falling apart, this time over the control of the strategically important Port of Darwin. Beijing has issued a strong diplomatic warning to Australia. The port is a key northern facility currently leased to a Chinese-owned company under a long-term agreement.
What is The Port of Darwin Dispute Between China And Australia?
The dispute further strains relations between Canberra and Beijing, already challenged by broader tensions on security and trade.
China’s ambassador to Australia, Xiao Qian, told reporters this week that Beijing views Australia’s push to reclaim the port as “no way to do business” and warned Canberra against altering the status of the lease, which has been in place since 2015.
He complained that Australia wanted to reverse the arrangement: “When you’re losing money, you want to lease it to a foreign company, and when it’s making money, you want to take it back?”- a comment that encapsulates Beijing’s ire at the policy shift.
Where is the Port of Darwin Located?
The Port of Darwin, located in Australia’s Northern Territory, was leased for 99 years to the Landbridge Group, a company owned by Chinese billionaire Ye Cheng, with the aim of boosting local economic activity through expanded trade operations. However, the lease has been controversial in Australia due to concerns over national security and foreign influence, particularly given the port’s proximity to Asia and its use for allied military logistics.
Australia’s Prime Minister Anthony Albanese has reiterated his government’s commitment to bringing the port back under Australian ownership, arguing that control of such critical infrastructure is in the “national interest.” He reaffirmed this stance during a visit to East Timor, saying Australia was determined to ensure the port “goes back into Australian hands.”
How Has China Reacted To The Port of Darwin Controversy?
In response, Ambassador Xiao warned that Beijing would “take measures to protect the Chinese company’s interests” if Canberra pursued forced changes to the lease, without specifying what actions might be taken. He also suggested that such a move could have broader implications for Chinese investment, cooperation and trade with the region, framing the potential repossession as detrimental to economic ties.
Official statements from Beijing’s foreign ministry have underscored that Landbridge acquired the lease through market mechanisms and that its legitimate rights and interests should be protected. China has called for Australia to honour the contractual arrangement, emphasising the importance of a transparent and stable business environment for foreign enterprises.
The row over Darwin Port reflects wider geopolitical tensions in the Indo-Pacific, where issues of sovereignty, economic influence and strategic positioning are increasingly defining relations between China and regional partners like Australia. As discussions continue, both sides face pressure to balance economic interests with national security considerations and diplomatic engagement.
(With inputs from ANI)
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
