Darwin port review ‘holds back’ China ties

Uncertainty over the Chinese-owned Port of Darwin emerges as a barrier to the restoration of relations with Beijing.

A ship laden with iron ore prepares to leave the Port of Darwin bound for China.

Uncertainty over the future of the Chinese-owned Port of Darwin has emerged as a barrier to the restoration of relations with Beijing, which says tensions over the “blue bridge” between the countries could slow the relaxation of trade sanctions on Australian exports.

As Anthony Albanese weighs an invitation to visit Beijing before the end of the year, a senior Chinese government official urged the “quick conclusion” of a review of the port’s Chinese ownership, saying the issue was undermining the stabilisation of bilateral ties.

The official said the port’s owner, Landbridge, was having difficulties sourcing finance from Chinese banks amid ongoing doubts over its tenure, while the treatment of Chinese investors by the Foreign Investment Review Board remained a key irritant.

The warning came as China’s ambassador to Australia, Xiao Qian, declared relations between the countries were at a “critical juncture” and called on the Albanese government to “stay on the right path to get along”.

Despite China’s ongoing coercive trade sanctions and its detention of Australians Cheng Lei and Yang Hengjun, Mr Xiao said China-Australia relations were “stabilising and improving”.

“It is time for the two sides to earnestly implement the important consensus reached by our leaders, uphold the original aspiration of establishing diplomatic ties, and stay on the right path to get along,” he said.

Mr Xiao hosted Australian and foreign defence attaches at the Chinese embassy in Canberra on Thursday at a reception to mark the 96th anniversary of the formation of China’s People’s Liberation Army.

He said the PLA was an “army of victory, discipline and peace”, and China’s military modernisation “will not pose a threat to any other country”.

The officer cadet band from the Royal Military College at Duntroon entertained guests at the function, playing the Chinese and Australian national anthems. Australia was represented by an army brigadier and a senior defence public servant.

A video extolling the PLA’s virtues played on large television screens, casting the two million-strong force as “undaunted by danger” and “ready to extend benevolence and love across oceans”.

The Department of Prime Minister and Cabinet confirmed it had completed a review of Landbridge’s 99-year lease over the Port of Darwin at the Prime Minister’s request.

The review was now under consideration by the government, a PM&C spokesman said.

It follows a previous review for the Morrison government that reportedly found no grounds to overturn the lease, which was originally signed in 2015, although its control of the key strategic asset has been branded by many as a security risk, and an impediment to greater use of Darwin’s harbour by the US military.

Beijing is also mains furious at Australia’s ban on “high risk” telcos Huawei and ZTE, and government concerns on TikTok and Chinese-made security cameras.

The function came as a Chinese spy ship shadowed Australian and international forces participating in the ADF’s biggest exercise, Talisman Sabre.

The Dongdiao-class auxiliary general intelligence vessel is in international waters off the Queensland coast trying to collect information on participating militaries, including those of Australia, the US, and Japan.

Australia’s defence relationship with the US is set to be strengthened further at the weekend when US Secretary of State Antony Blinken and Defence Secretary Lloyd Austin join Australian counterparts Penny Wong and Richard Marles for AUSMIN talks in Brisbane.

The Chinese government wants Mr Albanese to visit Beijing by the end of the year, but the trip is yet to be finalised amid concerns China is yet to make significant concessions to Australia.