Chinese ambassador Xiao Qian hits out over ‘ethically questionable’ Port of Darwin lease buyback

The Chinese ambassador to Australia says Anthony Albanese’s promise to boot a Chinese company from operating the Port of Darwin is “ethically questionable,” urging the government to honour the 99-year lease.

In a statement released by the embassy on Sunday night, Xiao Qian criticised Australia’s “ethically questionable” behaviour and said port owners Landbridge Group had made “significant investments” after winning a 99-year lease in 2015 for $506m.

The comments follow an election promise to buy back the lease, with the Prime Minister threatening direct intervention if the government is unable to find a new buyer.

“These efforts have brought remarkable improvements to the port, turning its financial situation from losses to profits and contributing positively to local economic and social development,” Mr Xiao said.

“Such an enterprise and project deserves encouragement, not punishment.

“It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable.”

Mr Xiao said Landbridge Group had undertaken an “open and transparent bidding process” to secure the commercial contract and urged the Australian government to honour its binding commitments.

While he acknowledged that Australia and China were “comprehensive strategic partners”, Mr Xiao said the countries needed to “foster mutual trust”.“We hope the Australian side will view the Darwin Port project objectively, honour its binding commitments under the contract and respect the autonomous decisions made by businesses based on development needs,” he said.

“We hope the Australian federal government and the Northern Territory government will create a fair, transparent, and predictable business environment for Chinese enterprises operating in Australia.”

As it stands, Australia’s special envoy for defence and northern Australia Luke Gosling has confirmed he has met with new buyers and said he was committed to ensuring a “good return on investment for the Chinese owners Landbridge”.

Returning the port’s ownership to Australian hands was sparked by concerns the critical piece of infrastructure should not be owned by a foreign entity.

It was leased to the Landbridge Group in 2015 under the Country Liberal territory government, reportedly taking the federal government by surprise.

Landbridge has also maintained the port is not for sale, and confirmed on Monday that it has yet to receive any engagements from any level of government.

“It is business as usual at Darwin Port, as we continue to focus on the growth of our operations,” said the group’s Australian non-executive director Terry O’Connor.

“Darwin port representatives escorted the Ambassador on a tour of the port during his recent visit to Darwin.

“Landbridge welcomes his comments in relation to the Port’s operation and its contribution to the Northern Territory economy.”