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In a recent press conference, China’s ambassador to Australia, Xiao Qian, expressed strong opposition to the Albanese government’s intentions to reclaim the Port of Darwin from its Chinese ownership. This move is perceived as a significant threat to future trade relations between the two nations and may compel Beijing to respond strategically. The remarks come amidst rising national security concerns that have influenced Australian policy toward foreign investments.
Concerns Over Trade Relations
Ambassador Xiao’s statements highlight the precarious nature of Sino-Australian trade ties, particularly following the Albanese government’s proposal to force the sale of Landbridge’s 99-year lease on the port. The decision, initially sparked by both Labor and the Coalition’s national security apprehensions, has left many questioning the long-term implications for bilateral trade.
Xiao underscored the investments made by Landbridge since acquiring the port in 2015, citing that the company has turned a profit for the first time after years of losses. “Over the last 10 years, Landbridge has invested a lot,” he remarked, noting that the port is now generating revenue after previously being unprofitable. “When you’re losing money, you lease it to a foreign company; when it starts making money, you want to take it back. That’s not a way to do business.”
Political Context and Implications
The issue escalated during the last election campaign when Prime Minister Anthony Albanese suggested that Landbridge had not sufficiently invested in the port’s operations, despite previous assurances that the lease would not be cancelled. In light of both Coalition and Labor reviews concluding there were no national security grounds to terminate the lease, the government faces criticism for potentially undermining established agreements with foreign investors.
Landbridge’s acquisition of the port involved a substantial investment of AUD 506 million, and the company reported a profit of AUD 9.6 million last financial year, a significant turnaround from a AUD 37 million loss the year prior. Xiao warned that any forced exit of Landbridge could have far-reaching consequences for Chinese investment in Australia, suggesting, “If anything happens, like the port being taken back by force, we have an obligation to take measures to protect the Chinese company’s interests.”
Regional Security Dynamics
Xiao’s comments also touched upon broader regional security issues. He downplayed recent deployments of the Chinese People’s Liberation Army (PLA) navy around Australia, referring to them as mere coincidences rather than provocations. In December 2025 and February 2026, Australian defence forces monitored Chinese naval movements, which raised alarm at high governmental levels. However, Xiao dismissed these encounters, asserting, “It has nothing to do with Australia.”
The ambassador further emphasized the importance of recognising China’s stance on Taiwan, asserting that opposition to Beijing’s claims over the self-governing island is unacceptable. “The question of Taiwan is not one that the region should compromise on. There’s no room for us to do that,” he stated, reflecting China’s unwavering position on the issue.
Why it Matters
The Australian government’s potential move to reclaim the Port of Darwin from Chinese ownership could ignite a new phase of diplomatic and economic tension between Canberra and Beijing. As Australia navigates complex national security concerns while aiming to maintain robust trade relationships, the implications of this policy could resonate beyond bilateral relations, affecting regional stability and international economic dynamics. The situation serves as a critical reminder of the delicate balance that must be struck between national security and foreign investment, with the potential for significant repercussions on both sides.
