Australia’s Albanese to address Darwin Port sale on China visit

The prime minister, after stating the Chinese-owned port should be sold to a domestic entity, will explain his country’s stance during trip

When Australian Prime Minister Anthony Albanese arrives in China next week for his second official visit, he will have more than the typical diplomatic niceties to discuss with President Xi Jinping.

A major task on Albanese’s agenda, besides routine topics like trade, will be to explain his country’s stance on Chinese investment – in particular, addressing the controversy over the ownership and potential government-influenced sale of the Darwin Port – the Post has learned from sources with knowledge of the matter.

This will make for a difficult conversation, analysts said, as Beijing has been on high alert to future divestments following US action over Chinese-owned ports at the Panama Canal.

Albanese will arrive in Beijing around July 15, one source said, as a “friendly gesture” to keep relations on a positive track.

Another source said the prime minister will attend the China International Supply Chain Expo, an event held in the country’s capital annually since 2023. This year’s edition will run from July 16 to July 20.

Australia’s Department of the Prime Minister and Cabinet said Albanese’s international engagements will be announced in “the usual way” in reply to a request for comment.

During his successful re-election campaign, Albanese said his government would work to buy back Darwin Port from its Chinese owners on national security grounds.

An evidence-based approach [is needed] to ensure that security concerns are well-founded, rather than based on mere suspicion or political assertionZhou Weihuan, University of New South Wales

Shortly after, China’s ambassador to Canberra Xiao Qian responded in a statement calling the move “questionable”, saying Landbridge Group – the state-owned firm awarded a 99-year lease on the port in 2015 – should not be punished for unpredictable geopolitical shifts.

The prime minister will “want to ensure” that China’s divestment from the Port of Darwin will “proceed with minimal disruption to broader bilateral and economic relations”, said Michael Feller, co-founder and chief strategist at consulting firm Geopolitical Strategy in Melbourne.

Zhou Weihuan, a law professor at the University of New South Wales, said national security remains a sticking point in the bilateral relationship.

“An evidence-based approach [is needed] to ensure that security concerns are well-founded, rather than based on mere suspicion or political assertion.”

A database from the US-based Council on Foreign Relations think tank showed that Chinese entities have invested in 129 global port projects – 17 with a majority share – with a presence “in at least one port in every continent except Antarctica.”

Despite persistent disagreements between both countries, Albanese’s coming trip “signals intent and momentum”, said David Olsson, national president at the Australia China Business Council.

“The visit comes at a time when both nations are grappling with shared challenges – climate change, trade stability and regional cohesiveness – and ongoing dialogue at the top level is essential to shaping credible paths forward.”

Australian companies will want to partner with Chinese firms that can “bring strengths in areas such as clean energy infrastructure, large scale project delivery and advanced manufacturing,” Olsson said.

“There’s also growing interest in working together to shape regional supply chains under RCEP [the Regional Comprehensive Economic Partnership trade agreement], particularly in areas like green iron.”

Australia’s largest energy companies have yet to publicly confirm their attendance at the Beijing expo. A source said Rio Tinto – the British-Australian mining giant – plans to be there, but the company did not respond to an email inquiry, nor did Melbourne-based mining multinational BNP.

Fortescue, the energy and mining conglomerate owned by billionaire Andrew Forrest, said the company would be absent when reached for comment.

China was Australia’s largest two-way trading partner in 2024 with a total trade value for goods and services of A$312 billion (US$204.24 billion), according to Australia’s Department of Foreign Affairs and Trade. China-bound exports accounted for almost a third of Australia’s total shipments.

Figures from Statista show Australia was China’s largest supplier of iron ore in 2024, accounting for around 743 million metric tons of the country’s total imports of around 1.24 billion metric tons.

“Albanese will want to encourage further Chinese investment in and purchases of Australian minerals, particularly iron ore,” said Feller of Geopolitical Strategy.

During his last visit in November 2023 – a trip that marked a thawing of relations after years of tension – Albanese met Xi in Beijing and made an appearance at the China International Import Expo in Shanghai.