Australia Analyzing 'Risks' of Leasing Darwin Port to Chinese Company, Defense Minister Says

The leasing of Darwin’s port to a Chinese company has raised concerns among Australia's allies, including the US, which has a troop base in the region. At the time the leasing deal was signed in 2015, former US President Barack Obama complained to the Australian government about not being given a "heads up" on the decision.

The Australian government is studying the “risks” associated with the leasing of the Darwin port to a Chinese company in what marks a fresh review into the contract signed between the government of the Northern Territory and the Beijing-backed Shandong Landbridge Group in 2015.

The Shandong Landbridge Group was awarded to run the port’s operations for 99 years.

“We’re seeking our own advice here about what options exist for us, what risks are posed by the current leasing arrangements. And we’ll make our decision at the end of that. We made it very clear at the time,” Australian Defense Minister Richard Marles said in an interview with Sky News on Tuesday.

Marles further reiterated his government’s concerns around the leasing of the port to a Chinese company, which the Australian government alleges has close links with China's Communist Party.

“We made clear that we did not support the decision around the leasing of the Port of Darwin to a Chinese‑owned company – to a Chinese Government-owned company I should say,” Marles remarked.

A previous official review of the decision in 2016, led by then-Defense Secretary Dennis Richardson, gave a clean chit to the leasing arrangement, describing the concerns raised by some observers as “alarmist” and “absurd.”

The former Australian government has, however, refused to make the findings of the review public, the Australian Broadcasting Corporation (ABC) reported this week.

Concerns over the Darwin port’s leasing to the Chinese group were renewed in the lead-up to the federal election held in May this year, as strained ties between Canberra and its largest trading partner Beijing occupied a center-stage during electioneering.

While in opposition, now-Prime Minister Anthony Albanese described Darwin as the most “strategic asset” because of its location looking towards Asia.

Albanese also accused the former Morrison government of compromising Australia's national security interests by leasing the port to China.

Days after his election victory in June, Albanese committed to launch a fresh review into the leasing of the port.

On Monday, Albanese said that the findings of the new review of the lease deal will be made public.

"People would be aware that it was leased out to a company connected, very directly, with the government of the People's Republic of China,” Albanese said at a press conference.