Beijing Warns It Will ‘Take Measures’ If Australia Axes 99-year Chinese Lease
Udumbara
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Beijing has threatened Australia saying it will retaliate if the Albanese Labor government proceeds with a plan to take back control of the Port of Darwin.
Speaking to media in Canberra on Jan. 28, Chinese Communist Party (CCP) Ambassador to Australia Xiao Qian said they were “watching closely” as the federal government considered whether to break the current 99-year lease to Chinese company Landbridge and resume control.
During the federal election campaign last year, both Labor and the opposition pledged to take back control of the port, which is located in northern Australia near Indonesia.
“If anything happens, like the port will be taken back by force or forceful measures, then we have an obligation to take measures to protect the Chinese company’s issues. This is our position,” Xiao told reporters at the CCP Embassy.
“Should Landbridge be forced to leave that port, I think it might also affect the substantive investment cooperation trade between Chinese companies with that part of Australia.”
Xiao added that Landbridge had invested in the infrastructure around the port.
“Starting from last year, Darwin Port stopped losing money and started to make money,” Xiao said, noting that Landbridge recorded a $9.6 million profit last financial year, with the year seeing a $37 million loss.
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Federal Government Exploring How to Axe 99-Year Lease
In 2015, the Northern Territory’s then-Country Liberal Party government leased the Port of Darwin for $506 million (US$354 million)—a deal that drew concern from then-U.S. President Barack Obama.During the election, both major Australian parties pledged to axe the port deal—the issue draws much attention from Australians concerned about foreign ownership and strategic threats.
“We want it to be in Australian hands ... we’re prepared to go down the road of taxpayer direct involvement,” Prime Minister Anthony Albanese told ABC Radio in April 2025.
More recently, Albanese reiterated his pledge on Jan. 27, adding that a deal to resume control was yet to be finalised.
“There are commercial negotiations and those commercial negotiations are continuing,” he said.
“I believe it should be back in Australian hands. That’s what we’re doing.”
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