Australia to Fully Review 99-Year Port Lease Agreement with China

Leased to Chinese Communist Party-Linked Conglomerate Landbridge for 99 Years
Australia: "Will Take Action if National Security Threat Concerns Arise"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Amid ongoing tensions between Australia and China, Australian authorities have decided to review the contract leasing a port to a Chinese company citing national security concerns.

On the 2nd (local time), the Sydney Morning Herald reported that the Australian Department of Defense has begun reviewing the Darwin Port contract under the directive of the Cabinet National Security Committee.

Previously, in 2015, the Australian government leased Darwin Port, located in the northern Darwin region, to the Chinese company Landbridge for 99 years. Landbridge signed a contract to operate Darwin Port for $390 million AUD (approximately 436.6 billion KRW).

Landbridge is a company owned by Chinese conglomerate Ye Qing and is known to have close ties with the Chinese military. This has raised concerns that Darwin Port, a critical infrastructure facility and a major trade route between Australia and Asian countries, could fall under the influence of the Chinese Communist Party. Additionally, since Darwin Port serves as a strategic base for U.S. Pacific operations, then-U.S. President Barack Obama strongly protested the contract when it was signed.

Since last year, Australian authorities, showing moves to counter China, are believed to have initiated the contract review citing national security concerns related to the Darwin Port lease. Australian Defense Minister Peter Dutton acknowledged the start of the contract review, stating, "We will be able to examine options related to our national interests."

Earlier, Prime Minister Scott Morrison announced last week that, after receiving opinions from the Department of Defense and national security agencies, the Australian government would decide on measures regarding port ownership. At that time, he said, "If there are opinions that pose a risk to national security, the government will take action accordingly."

Meanwhile, in April last year, when the Australian government officially requested the international community to investigate the theory that COVID-19 originated in Wuhan, China strongly opposed this, causing diplomatic friction between the two countries. The Chinese government imposed anti-dumping tariffs and import restrictions on Australian beef, barley, timber, and wine as economic retaliation. In response, the Australian government canceled the Belt and Road Initiative contracts signed by its state of Victoria with China and plans to file a complaint with the World Trade Organization (WTO) against China's anti-dumping tariffs.

This content was produced with the assistance of AI translation services.