Chinese authorities have issued a firm diplomatic warning to the Australian government over its intention to reclaim control of the strategically significant Port of Darwin in the Northern Territory, underscoring the broader strains in Australia–China relations as Canberra seeks to bolster national interests.

The port, the most northerly maritime facility in Australia and a key gateway for Indo-Pacific trade, has been operated by the Chinese-owned Landbridge Group under a ninety-nine-year lease granted in 2015. Australian Prime Minister Anthony Albanese has renewed his pledge to bring the port back into Australian hands following sustained political pressure and bipartisan campaign commitments during last year’s federal election, arguing the asset’s strategic location merits direct national oversight.

Beijing’s criticism comes as Canberra explores options for transferring the port’s management to an Australian entity or, if necessary, intervening directly should a commercial solution not be found.

In recent statements, China’s ambassador to Australia, Xiao Qian, described the Australian government’s plan to end the lease as “ethically questionable,” asserting that Landbridge has made significant investments in improving the port and contributed to local economic development.

The ambassador urged respect for contractual obligations and cautioned that undermining a legitimate business arrangement could jeopardise the “comprehensive strategic partnership” between the two countries and send adverse signals to investors.

The dispute highlights the diplomatic sensitivities surrounding critical infrastructure ownership in an era of intensifying geopolitical competition in the Indo-Pacific region.

Port Darwin’s proximity to key Australian defence facilities and its role in hosting rotational United States military activities have heightened scrutiny, with Canberra asserting that returning the port to Australian management is aligned with national security and economic priorities.

Australian officials have emphasised that any transition will adhere to market principles and seek a fair, transparent process, while negotiations with potential Australian operators continue.

As the debate over the port’s future unfolds, the issue is expected to test Canberra’s ability to balance sovereign interests with maintaining constructive engagement with Beijing, Australia’s largest trading partner.

China’s warning signals its willingness to press Canberra diplomatically over matters it regards as affecting the interests of Chinese companies operating abroad, even as broader diplomatic and economic ties are managed within a complex strategic environment.