The Australian Labor government has decided to uphold the 99-year lease held by Chinese company Landbridge over the Port of Darwin. This decision comes after a review by the Department of the Prime Minister and Cabinet, which concluded that there are sufficient security measures in place to manage and protect the infrastructure. The government has accepted this advice.
The lease, which was granted in 2015, raised concerns in both Australia’s Defence Department and the U.S. government. Former U.S. President Barack Obama conveyed his concerns directly to then-Prime Minister Malcolm Turnbull. However, a review conducted by the Defence Department in 2021 found no national security grounds to overturn the deal.
Prime Minister Anthony Albanese had previously expressed his commitment to reviewing the lease due to its importance as critical infrastructure and Landbridge’s connection with China. However, the government has now decided not to revoke the lease. The Department of the Prime Minister and Cabinet stated that the previous assessments and risk management arrangements provide sufficient protection for Australia’s national security interests.
The government has pledged to continue monitoring the lease and Port of Darwin to ensure the safety and security of Australians. The review was conducted in consultation with various government departments and intelligence agencies, including Defence, Department of Foreign Affairs and Trade, Attorney-General’s Department, Department of Home Affairs, Office of National Intelligence, and Australian Security Intelligence Organisation.
This decision comes at a time when Beijing appears to be softening its stance towards Australia and the Labor government. The release of Australian citizen Cheng Lei after three years in prison and the upcoming meeting between Prime Minister Albanese and Chinese leader Xi Jinping indicate a thawing of relations. Beijing had previously frozen diplomatic contact with the Australian government following the ban on Huawei from the 5G network and trade restrictions imposed by China in response to the call for COVID-19 origin investigations.
In addition, Beijing recently lifted the bans on Australian barley exports, which were implemented three years ago. These restrictions had also affected other Australian exports and resulted in the detention of Cheng Lei. The lifting of the barley export ban coincided with heavy flooding in China’s grain-producing region.