by Sebastien GOULARD
On May 3rd, Australia will hold its federal elections. The outcome could significantly impact Australia-China relations and call into question the development of the Port of Darwin, the capital of the Northern Territory.
Landbridge and Darwin
In 2015, the Northern Territory government leased the Port of Darwin to Chinese company Landbridge for 99 years, in exchange for nearly AUD 390 million. Landbridge also committed to investing over AUD 150 million to modernize the port over the following 25 years.
Shandong Landbridge Group (山东陆桥国际货运代理有限公司) is a private company whose executives maintain close ties with the central Chinese government. Andrew Robb, Australia’s former Minister for Trade and Investment who approved the deal, later took a position with the Chinese company.
Darwin and Sino-Australian Relations
At the time, Sino-Australian relations were strong. China was Australia’s largest trading partner, accounting for nearly one-third of Australian exports. Chinese investments were also a major driver of Australia’s economic growth, making the country one of the top destinations for Chinese outbound investment. Australian states and territories sought to deepen ties with China; for example, in 2018, the state of Victoria independently signed up to China’s “Belt and Road Initiative,” the flagship connectivity project launched by President Xi Jinping in 2013, without federal approval.
However, relations began to deteriorate in 2019 when Australian media accused certain Chinese business figures of attempting to influence domestic political decisions. Subsequently, the Australian government took strong positions on issues related to Hong Kong and Xinjiang, leading to tensions with Beijing. In retaliation, China imposed trade sanctions on Australian products. Relations further worsened during the COVID-19 pandemic when Australian Foreign Minister Marise Payne called for an international investigation into the origins of the virus.
Tensions have also been growing in the Pacific region, where China’s expanding influence — exemplified by the 2022 security agreement between China and the Solomon Islands — has raised concerns in Canberra. Nevertheless, the election of Prime Minister Anthony Albanese in 2022 brought some improvements to the bilateral relationship.
Reassessing the Darwin Port Agreement
Australia has become increasingly aware of its economic reliance on China and is seeking to reduce this dependence. There now appears to be a political consensus across the Australian political spectrum to revisit the agreement between the Northern Territory and Landbridge concerning the Port of Darwin.
On April 4th, during a radio interview, Prime Minister Anthony Albanese stated that the Port of Darwin should be under Australian control. The following day, Opposition Leader Peter Dutton, during a visit to the Northern Territory capital, declared that the port was a strategic asset and pledged that if the Liberal-National Coalition were to win the federal election in early May, recovering the port would be a top priority.
This political alignment comes in the wake of a Chinese naval exercise held off the Tasman Sea in February. The Australian government has reportedly approached investment funds to explore options for taking back control of the port, although Landbridge has maintained that the port is not for sale. However, according to some reports, Shandong Landbridge may be interested in selling the port as part of efforts to reduce its debt burden.
This is not the first time Australian leaders have questioned Landbridge’s presence in Darwin — similar concerns arose in 2020. Nevertheless, challenging the existing lease could damage Australia’s reputation among investors, particularly from China and beyond.
The Strategic Importance of the Port of Darwin
Today, the Port of Darwin serves as a major hub for trade between Australia and Asia. In 2025, it ranked as the 10th busiest port in Australia — far behind major ports like Melbourne or Newcastle — but its strategic value is considerable. It serves as the primary gateway for exports of raw materials (such as minerals) and livestock produced in central and northern Australia.
The port also has military significance, being home to the Coonawarra naval base and facilities to host U.S. Marines. However, Landbridge’s operations in Darwin are purely commercial, and Australian authorities have relatively strong oversight over these activities.
China and the Federal Elections
China has emerged as a major topic in the upcoming federal elections. The main political parties have each pledged to pursue greater independence from Beijing, with memories of China’s trade sanctions still fresh.
Nonetheless, political leaders are also aware of the significant influence of Australia’s Chinese-origin communities and are seeking to appeal to them by adopting a more conciliatory tone toward China.
Author: Dr. Sebastien Goulard is the founder and editor-in-chief of Global Connectivities.
