China Manages Port in Australia Beside US Military Base, Previously Allowed Now Dispute

A US warship berths at the port of the Darwin region, Australia. (Unsplash-Francis Cooper-McKenzie)

JAKARTA - Australian Defense Minister (Menhan) Richard Marles said his country was disappointed with the lawsuit from a Chinese company that has the lease to manage the Darwin Port refusing to return it to local ownership.

The Chinese private company, Landbridge, obtained a 99-year lease on the management of the strategic Darwin Port in 2015. The deal triggered criticism from then US President Barack Obama.

"We are committed to returning the Port of Darwin to Australian hands," Marles told reporters during a visit to Darwin on Thursday, May 21.

Australian Prime Minister (PM) Anthony Albanese has promised last year to return the port in the northern part of his country to local ownership.

Darwin's port sits opposite a military base harboring 2,000 US Marines every year and an upgraded runway for US bombers - to Australian ownership.

In April 2026, Landbridge billionaire owner Ye Cheng filed a complaint in a World Bank court for an investment dispute, alleging that Australia's insistence that Landbridge sell the port meant it was in breach of its free trade agreement with China and was a discriminatory approach.

"We are disappointed with the steps that have been taken to bring this matter to an international court. Obviously, we will do everything we can to defend this matter," he continued.

Marles also noted that the US military was committed to "doing more from Darwin".

Darwin is Australia's closest port to Asia, and shipments of commodities including iron ore and liquefied natural gas to China have dominated trade ties.

In January 2026, China's ambassador to Australia, Xiao Qian, warned that if Landbridge was forced to leave the port, it could have an impact on wider trade and investment between China and Australia.