China threatens trade bans over vow to take back port
China has announced that it will impose new economic sanctions on Australia if the Albanian government continues with its plan to take back control of the Port of Darwin.
Prime Minister Anthony Albanese vowed during the 2025 federal election to return the port to Australians, despite it being under a 99-year lease to Chinese company Landbridge.
Chinese Ambassador to Australia Xiao Qian said talks were taking place between the two governments and his country was “watching closely”.
“If something happens, such as taking back the port by force or coercive measures, then we have an obligation to take measures to protect the Chinese company’s issues. That is our position,” he told reporters at the Chinese Embassy in Canberra on Wednesday.
“If Landbridge is forced to abandon that port I think it could also impact the important investment cooperation trade between Chinese companies and that part of Australia.
“This is not in Australia’s interests.”
Mr. Xiao said he hoped the situation would not reach a stage where “the Chinese side has to do something.”
China last imposed trade sanctions on Australian products in 2020 after the previous Morrison government called for an investigation into the COVID-19 outbreak.
Beijing has gradually lifted sanctions worth $20 billion after Labor takes office in 2022.
The port was leased to the Chinese company by the Northern Territory government in 2015, immediately raising concerns about one of Australia’s most strategic assets.
Both Labor and the coalition promised to return the port to Australian ownership during the election campaign.
Mr Albanese reiterated his promise to Darwin on Tuesday, but no deal has yet been finalised.
“There are commercial negotiations and those commercial negotiations are continuing,” he said.
Deputy Defense Secretary Peter Khalil said the national security committee was evaluating the port.
“There will be announcements from the government when the time is right,” he told ABC News on Wednesday.
Australian National University associate professor Graeme Smith said it was unlikely Mr Albanese took the step merely for political gain, but noted a “performative element”.
“If we (Australia) take back the Port of Darwin and trade sanctions are what seems most likely to happen at the moment, China will have to do something,” he told AAP.
Mr Xiao said Australia and China were “friends, not enemies” but offered a warning about Taiwan.
“We are somewhat flexible in managing some issues or differences, such as trade relations in our two countries… but Taiwan is not an issue on which we can compromise or be flexible,” he said.
Beijing considers Taiwan, a self-governing democracy, as part of its territory.
Australia “accepts” the Chinese government’s position in the 1972 joint declaration but stops short of acknowledging Beijing’s claim to Taiwan.
Australia does not recognize Taiwan as a country but maintains unofficial contact.
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