China’s ambassador to Australia has issued a warning to the Albanese government over its consideration of reclaiming the Darwin Port, labelling the move “ethically questionable.”
The port, located in northern Australia, has been at the centre of a long-running national security debate since the Northern Territory government leased it to Chinese company Landbridge for 99 years in 2015.
During the last federal election campaign, both the Labor and Coalition parties pledged to bring the port back under Australian control. While Labor has not outlined a specific plan, it has indicated ongoing discussions with Australian companies that could potentially take over the lease.
In a statement published online on Sunday, Ambassador Xiao Qian—who recently visited Darwin and met with Landbridge staff—defended the lease, saying it was secured through a “transparent and lawful” process and complied with Australian regulations.
He highlighted Landbridge’s investments over the past decade, which he said have improved port infrastructure, streamlined operations, and expanded its customer base—turning the port from a loss-making venture into a profitable business that benefits the local economy.
Xiao urged both the federal and NT governments to honour the original agreement and respect business decisions made according to development needs.
“Such an enterprise deserves encouragement, not punishment,” he said. “It is ethically questionable to lease the port when it was losing money and then try to take it back after it becomes profitable.”
Some former NT government members have said the decision to lease the port was made because the federal government had not provided the necessary infrastructure funding.
Ongoing negotiations and federal response
While the federal Labor government has yet to confirm when or how it will act on its election promise, MP Luke Gosling—special envoy for defence and northern Australia—said he has met with potential Australian buyers.
“We want to ensure a fair return for the current leaseholder, Landbridge,” Gosling said. “We’re not rushing this or seeking to escalate tensions, but the port does need infrastructure upgrades to boost its efficiency.”
Federal Infrastructure Minister Catherine King described the port as a nationally significant asset and confirmed the government is working with the NT on potential next steps.
NT Treasurer Bill Yan stated that future decisions about the port would be a matter for the federal government and its discussions with the Chinese ambassador.
Meanwhile, Landbridge maintains that the port is not for sale.
On Monday, Landbridge’s Australian non-executive director, Terry O’Connor, said the company has not yet been approached by any government representatives.
“Operations at Darwin Port continue as normal, with a focus on growth,” he said, adding that Landbridge welcomed the ambassador’s support for the port’s economic contributions to the region.
