China threatens to block Australian exports if Albanese Government proceeds with Darwin Port buyback

The Chinese ambassador has flagged possible trade retaliation if Australia ends a Beijing-controlled company’s lease of Darwin Port, declaring his nation has an “obligation” to protect its business interests.

During a wide-ranging press conference, the diplomat also boasted that “China provides invaluable stability and certainty to a turbulent world,” while dismissing recent reports of a thwarted military coup against President Xi Jinping as “unfounded”.

When questioned on Darwin Port Ambassador Xiao Qian revealed there was “continuing” discussions with the Albanese government on the future of the strategic maritime asset which was leased by the Northern Territory to Chinese company Landbridge in 2015.

During last year’s federal election Prime Minister Anthony Albanese pledged to return Darwin Port to Australian hands, but commercial negotiations have so far not secured a new owner.

Speaking inside the Chinese embassy, Ambassador Xiao has declared that Beijing will be obliged to “take measures” to protect Landbridge if its 99-year-lease of Darwin Port is torn up.

“This is a business between the Chinese company with (the) Australian Government. It is reached on the basis of market rules,” Ambassador Xiao told reporters in Canberra at an event to mark Chinese New Year.

“So, if anything happens, like the Port will be taken back by force or forceful measures, then we have obligation to take measures to protect the Chinese company’s issues. This this is our position.”

“Chinese companies have used (the port) before for importing Australia cattle, sheep, beef, minerals, iron, coal, iron ore etc. And should Landbridge be forced to leave that port, I think it might also affect the substantive investment cooperation trade between Chinese companies with that part of Australia. That is not in any interest of Australia.

“Right now, we are following closely, talking and moving along. We have made clear our views and our hope that issue will be handled properly,” the Ambassador said.

“I mean that we believe it’s important to respect the views of the Chinese companies, and the issue should be dealt with according to following the rules of the market.”

Responding to the comments from Beijing’s top diplomat on Wednesday, Anthony Albanese doubled down on Labor’s election commitment to take back the Port of Darwin “in the national interest”.

“That wasn’t something that we supported at the time, and we are committed to making sure that that port goes back into Australian hands, because that is in our national interest,” he told reporters during a visit to Timor Leste.

As well as warning that Beijing was “closely watching” developments on Darwin Port, he sternly reminded Australia there was “no room for compromise” on its position towards Taiwan, which it argues is a province of China and an integral part of its territory.

When questioned by The Nightly about the weekend purging of top general Zhang Youxia from the People’s Liberation Army, he insisted the Chinese Communist Party was determined to stamp out corruption and rejected reports of a thwarted military coup.

“However high you’re in a position, or you used to be, whichever your... contributions... Once you’re involved in corruption, you will be punished according to law,” the Ambassador said.

“So that is the message. Any other interpretation is, other than this, is unfounded.”

Asked by a Chinese media representative about Japan’s push to acquire nuclear weapons, the Ambassador echoed recent comments from Beijing by declaring China wouldn’t “allow” the militarisation of its Asian neighbour.

He accused Tokyo of “paving the way for the return to being a military power again” following its defeat in World War II, saying the former colonial power was again trying to “speed up remilitarisation”.

“(Japan should) never be allowed to have nuclear weapons,” he said.

“The Japanese government has never, has never completely reflected on its wars of aggression, and has yet to offer a sincere apology to countries in the region, including China and Australia.”

In his wide-ranging opening address, the Ambassador talked up the strong presence of Australian companies at China’s annual International Import Expo, the increasing numbers of Chinese tourists visiting Australia, as well as growing sporting ties.

“Against the backdrop of sluggish global trade growth, last year bilateral trade between the two countries, once again, exceeded $300 billion Australian dollars,” he said.

“For 16 consecutive years, China has remained Australia’s largest trading partner, largest export destination, and the largest source of imports.