Australia Declines to Cancel Chinese Lease of Port

Image copyright: Matt Jelonek/Getty Images News [via Getty Images]

The Facts

  • The Australian government has decided not to cancel a 99-year lease held by a subsidiary of Chinese company Shandong Landbridge Group on its Port of Darwin following a security review, despite US concerns over potential Chinese spying on its nearby military forces.

  • After a lease was awarded to the Australian subsidiary in 2015, the Obama administration expressed concern about the company's alleged ties to the People's Liberation Army of China.


The Spin

Pro-China narrative

After the Australian government reviewed Landbridge's lease on the strategically important Darwin Port for a second time, it concluded — yet again — that there's no basis for security concerns as the port was operated as a commercial enterprise in accordance with Australian law.

Anti-China narrative

The case against Landbridge's lease is based on the Darwin Port's strategic role in the event of a confrontation in the Indo-Pacific. Australia is particularly important for security and stability throughout the region, and it's illogical to let Beijing take control of such strategic infrastructure as it is a well-known fact that private companies work in tandem with the Chinese Communist Party.


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