China Warns Australia Over Darwin Port Seizure Plans

A 99-year lease that's barely 10 years old is already heading for a messy divorce. China and Australia are locked in a high-stakes battle over Darwin Port, and Beijing just fired a warning shot.

The Accusation: Taking Back What's Profitable?

Chinese Ambassador Xiao Qian didn't mince words during his annual media briefing on Tuesday. "When you're losing money, you want to lease it to a foreign company, and when it's making money, you want to take it back?" he asked, calling Australia's moves *unethical* and "no way to do business."

The dispute centers on Darwin Port, Australia's strategic northern gateway that Chinese company Landbridge Group has controlled since 2015 under a $350 million, 99-year lease. Back then, Australian authorities were eager for Chinese investment to revitalize the remote Northern Territory's economy. Fast-forward a decade, and that same deal is now viewed as a *national security liability*.

Prime Minister Anthony Albanese campaigned on returning the port to Australian control, calling it a matter of "*national interest*" during his East Timor visit on Wednesday. But Beijing isn't planning to go quietly.

China's Counterpunch: 'We Will Take Measures'

Xiao's response carried an unmistakable threat. If Australia tries to forcibly alter the lease agreement, China will "take measures" to defend Landbridge's interests. "We will see when it's time for us to say something, do something, to reflect the Chinese government's position and protect our Chinese companies' legitimate interests," he warned, though he didn't specify what those measures might look like.

This isn't just diplomatic posturing. China remains Australia's largest trading partner, with $218 billion in two-way trade in 2024-25. When relations soured in recent years over national security and human rights issues, Beijing responded with trade sanctions on Australian coal, wine, and barley that cost billions.

The irony? Multiple Australian government reviews, including one commissioned by Albanese himself, found *no legal grounds* to cancel or alter the Chinese lease agreement. Yet the political pressure continues to mount.

The Bigger Strategic Game

This standoff reflects a broader recalibration happening across the Indo-Pacific. As geopolitical tensions intensify, investments once welcomed as economic opportunities are being reassessed through a *security lens*. Darwin Port's location makes it particularly sensitive – it's close to key military installations and sits along crucial shipping routes.

For China, this isn't just about one port deal. It's about the *sanctity of contracts* and whether Western nations will honor long-term agreements when political winds shift. For Australia, it's about balancing economic benefits with strategic autonomy in an era of great power competition.

The precedent being set here will reverberate far beyond Darwin. Other nations with significant Chinese infrastructure investments are watching closely, wondering whether economic nationalism will trump legal obligations.