Chinese Ambassador Xiao Qian has issued a sharp warning to the Albanese Government, suggesting that fresh economic sanctions could follow if Australia proceeds with a forced buyback of the Darwin Port.
Speaking at a press conference in Canberra to mark the Lunar New Year, Ambassador Xiao emphasised that the 99-year lease held by the Beijing-controlled company, Landbridge, was established under market rules and must be respected.
He declared that China would be "obliged to take measures" to protect its corporate interests should the strategic maritime asset be seized through forceful government intervention.
The Ambassador explicitly linked the fate of the port to broader bilateral trade, noting that Landbridge facilities are vital for Australian exports such as cattle, coal, and iron ore.
He cautioned that a forced exit could severely disrupt "substantive investment cooperation" between Chinese firms and Northern Australia, a move he claimed would ultimately harm Australian interests.
Despite these warnings, Prime Minister Anthony Albanese remains steadfast in his election commitment to return the port to Australian ownership.
During a recent visit to Darwin, the Prime Minister reiterated his criticism of the 2015 lease agreement, calling it a decision that ignored national interests. While he confirmed that sensitive commercial negotiations are currently "continuing," he declined to provide a specific timeline for the transfer.
As the diplomatic standoff intensifies, the Australian government faces the delicate task of balancing national security concerns with the potential for renewed economic retaliation from its largest trading partner.