China’s 99-Year Lease on Australian Port of Darwin to Remain Intact, Ensuring Safety and Foreign Investment
Australia has announced that a security review of the 99-year lease held by Chinese company Landbridge on the northern port of Darwin has concluded that there is no need to vary or cancel the lease. This decision ensures the safety of Australians while maintaining Australia’s attractiveness as a destination for foreign investment.
The lease of the commercial port to Landbridge, which operates a commercial wharf and cruise ship terminal, came under scrutiny in 2021 as the Australian government ramped up foreign investment screening. The review, conducted by defence, foreign affairs, and security agencies, found that the lease does not pose a security risk.
China had previously criticized Australia for blocking Chinese investment in infrastructure on national security grounds, leading to a diplomatic dispute between the two countries. However, as tensions ease, Australia is keen to maintain its economic relationship with China.
The announcement that the lease will remain intact comes ahead of Prime Minister Anthony Albanese’s visit to Washington next week, and an expected visit to China later this year. The US State Department has not commented on the Australian statement.
Landbridge won the bidding process in 2015 to operate the Darwin port in a deal worth A$506 million ($390 million). The lease was awarded shortly after the United States deployed a rotating group of US Marines in Darwin, highlighting the strategic importance of the region.
While concerns have been raised about foreign ownership of critical infrastructure, experts argue that the port leased by Landbridge does not pose the same level of security risk as other areas such as power grids or 5G networks. In the worst-case scenario, Australia could nationalize the port if necessary.
Peter Dean, director of foreign policy and defense at the United States Studies Centre in Sydney, suggests that the government may consider building a second port in or near Darwin for military use. He explains that naval assessments have called for a dedicated wharf, separate from the commercial port.
Landbridge and Darwin Port have responded to the decision by stating that there is no basis for security concerns, as the port is operated as a commercial enterprise in accordance with Australian law.
Australia is also pushing for China to lift trade blocks on its wine industry ahead of Prime Minister Albanese’s visit, with a World Trade Organisation ruling on the dispute expected soon.
In conclusion, Australia has decided to maintain the 99-year lease of the Darwin port held by Chinese company Landbridge, citing no significant security concerns. This move aims to ensure the safety of Australians and maintain Australia’s attractiveness for foreign investment. The decision comes amid efforts to ease tensions with China and strengthen economic ties.
