China's ambassador to Australia, Xiao Qian, has delivered a forceful rebuke to the Albanese government's policy aimed at reclaiming the Port of Darwin from Chinese ownership. Speaking at a press conference held at the Chinese embassy in Canberra, Ambassador Xiao cautioned that such a move would jeopardise future trade growth and compel Beijing to take protective measures.
Ambassador Xiao's Strong Critique of Labor's Policy
Ambassador Xiao criticised Labor's stance, which seeks to force the Chinese-owned company Landbridge to sell its 99-year lease on the port. This policy emerged from pre-election national security concerns shared by both Labor and the Coalition, though the government has not yet outlined a specific timeline for the forced sale.
Xiao highlighted the significant investments made by Landbridge over the past decade, noting that the port has recently transitioned from losses to profitability. He argued that it is unfair for Australia to reclaim the asset now that it has become financially viable.
Economic and Diplomatic Implications
Landbridge, owned by Chinese billionaire Ye Cheng, initially acquired the port in 2015 for $506 million without requiring federal approval. However, the sale quickly drew criticism from national security agencies and even former US President Barack Obama. In the last financial year, the company reported a profit of $9.6 million, a notable improvement from a $37 million loss the previous year.
Ambassador Xiao emphasised that while Landbridge will decide its future role, the Chinese government is obligated to safeguard the legitimate interests of its companies abroad. He warned that any forceful reclamation could negatively impact investment, cooperation, and trade between Chinese entities and Australia, potentially harming Australia's own economic interests.
Broader Context of Australia-China Relations
China remains Australia's largest two-way trading partner, accounting for 24% of all goods and services trade, valued at $309 billion in the last financial year. Prime Minister Anthony Albanese announced the forced sale plans during a radio interview in the election campaign, citing insufficient investment by Landbridge, despite earlier assurances that the lease would not be cancelled.
Two government reviews, commissioned by both major parties, found no national security grounds to terminate the lease. In response, the previous Coalition government enhanced the powers of the Foreign Investment Review Board.
Regional Security and Taiwan Stance
Ambassador Xiao downplayed recent deployments of the Chinese People's Liberation Army navy near Australian waters, describing them as coincidental and unrelated to Australia. He also urged Canberra to prepare for a "reunified China," stating that opposition to Beijing's control over Taiwan is unacceptable. Australia supports the status quo for Taiwan and opposes unilateral moves by China.
Xiao noted flexibility in managing bilateral issues like trade but stressed that the Taiwan question is non-negotiable, with no room for compromise. This stance underscores the complex diplomatic landscape as both nations navigate economic and strategic tensions.
