Renewed Clash Between China and Australia Over Port of Darwin
China’s Ambassador to Australia, Xiao Qian, renewed the public debate over control of the Port of Darwin during his New Year Media Briefing and Gathering. The issue had emerged during the 2025 elections in Australia, with both parties vowing to regain control of the port from a Chinese company, which prompted the Ambassador to say it could jeopardize China’s strong investments in Australia.
Ambassador Xiao alleged Australia’s interest in retaking control of the port only came after a Chinese company, Landbridge, made significant investments in the Port of Darwin and made the port operation profitable again. Landbridge paid A$506 million in 2015 for a 99-year lease on the port. According to the briefing, last year, the company made a profit of A$9.6 million versus a loss of A$37 million.
Located on the northern coast of Australia, while a smaller port, Darwin has a strategic location. The U.S. military has used the port as part of its efforts to enhance its base operations, and that promoted then President Barack Obama to speak out against the Chinese deal.
A simmering issue in Australian politics, the issue of port control came to the forefront when the opposition party vowed during last year’s elections to reclaim the port. Prime Minister Anthony Albanese committed to also reclaim the port, saying they could force a sale or cancel the lease. Australian media points out that the issue had been out of the limelight for eight months since the election.
Discussing a broad range of issues, the Ambassador, during his press event, said any efforts to retake the port “risked impacting China’s substantive investment” in Australia. Media reports highlighted that the response questioned the motives behind the government's efforts to reclaim the port. He said the actions were “not the way to do business.”
The Australian Broadcasting Corporation quotes the Ambassador as saying, “Starting from last year, Darwin Port stopped losing money and started to make money. It was at this juncture that suddenly we hear the government of Australia wants to take [it] back … so I really question the ethical value."
It was revealed that there are ongoing commercial negotiations regarding the port and its lease. Australia previously asserted that Landbridge, which was experiencing financial problems in other operations, had failed to make the required investment in the Port of Darwin.
Asked about the Ambassador’s remarks, Prime Minister Albanese said the port should be in Australian hands. He repeated the claims that it was in Australia’s national interest and security concerns.
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Australia has a strong trading relationship with China. Media reports highlighted that it is the country’s largest two-way trade partner. China is reported to account for nearly a quarter (24 percent) of all goods and services trade with Australia.
The Ambassador told reporters that China was “watching very closely” developments concerning the Port of Darwin. He said the Chinese government has an obligation to protect the legitimate interests of Chinese companies.