Prime Minister Scott Morrison speaks during Question Time in the House of Representatives on … [+]
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Australia will review the 99-year lease of a commercial and military port to China’s Shandong Landbridge Group, the Sydney Morning Herald reported on Sunday, a move that’s likely to further heighten tensions between Beijing and Canberra.
The National Security Committee of Prime Minister Scott Morrison has tasked the Department of Defense to investigate whether Landbridge should be forced to give up its ownership to the Port of Darwin on national security grounds, the newspaper said.
Asked whether the government will resort to forced divestment, the defense minister said it would take “national interests” into consideration.
The Australian offices of Landbridge did not respond to a request for comment about the report.
Based in Shandong, Landbridge has operations that span petrochemicals, logistics, trade and deep-water ports. The privately held company, which is chaired by Chinese billionaire Ye Cheng, is said to be partners with government-controlled oil giants CNOOC and China National Petroleum. Landbridge is also reportedly linked to the China’s military.
In 2015, Landbridge won the right to operate the Port of Darwin in Australia’s Northern Territory for 99 years with a bid of A$506 million ($391 million). The conglomerate took an 80% stake in the port under the lease.
Port of Darwin in Australia’s Northern Territory.
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The deal, however, was said to have angered then-U.S. President Barack Obama who reportedly expressed his dissatisfaction at not being informed about the purchase in advance. The port is strategically important for thousands of U.S. marines rotating through Darwin each year.
Australia’s move to review the port’s lease comes amid growing tensions with China. On April 21, Canberra said it would cancel two agreements between China and the state government of Victoria. The deals had been part of Beijing’s Belt and Road Initiative, and their cancellation led to China’s embassy expressing its “strong displeasure and resolute opposition” to the action.
It was the first such action under the new Foreign Relations Act that allows Australia to suspend agreements made between state authorities and foreign countries on national security grounds.
Relations between the two countries have deteriorated over the past year after Australia’s government called for an independent investigation into the origins of the pandemic. Beijing’s response was to impose tariffs on Australian barley and wine while blocking coal shipments.
