Landbridge Group Takes Australia to International Tribunal Over Port of Darwin Lease
In a historic first, a Chinese-owned company has filed international legal proceedings against the Australian government, challenging the planned termination of a 99-year port lease on national security grounds.
Legal Proceedings
Landbridge Group filed its case with the World Bank's International Centre for Settlement of Investor Disputes (ICSID) on April 23, 2026, marking the first time an international tribunal case has been brought against Australia. The company stated it was unable to achieve a satisfactory outcome through dialogue.
Associate Professor Colin Hawes noted that investor-state dispute settlement cases at this forum typically take around four years to resolve.
Transport and Infrastructure Minister Catherine King expressed disappointment and stated the government will defend the claim while continuing good-faith discussions with Landbridge. Opposition defence spokesman James Paterson urged the government to use constitutional powers to force a sale if necessary.
Background of the Lease
The Port of Darwin was leased to Landbridge in 2015 for $506 million through an open bidding process. Landbridge is owned by Chinese billionaire Ye Cheng. The port is located opposite the Larrakeyah Defence Precinct.
The initial sale did not require federal approval but subsequently drew complaints from national security agencies and former US President Barack Obama.
The company noted that it acquired its interest through a fair, open, and competitive process with full compliance of Australian laws and regulatory approvals, and that multiple Australian government reviews found no national security concerns. A 2023 review by the Department of Prime Minister and Cabinet found no need to change or cancel the lease, citing existing safeguards.
Australian Government Position
Prime Minister Anthony Albanese committed during the 2025 election campaign to return the port to Australian ownership on national security grounds. This stance followed previous statements where Albanese had ruled out cancelling the lease. Both Labor and the Coalition promised during the election to return the port to Australian ownership.
Defence Minister Richard Marles stated that commercial negotiations are currently underway, characterizing the matter as complex. The opposition's foreign affairs spokeswoman, Michaelia Cash, criticized the government for perceived delays in fulfilling its election promise and called for a clear implementation plan.
Chinese Government and Company Response
Landbridge's non-executive director, Terry O’Connor, confirmed the company does not wish to sell its interest and will engage with the government to understand its concerns. The company stated the proposed termination is discriminatory and inconsistent with Australia's FTA obligations.
China's ambassador to Australia, Xiao Qian, confirmed discussions regarding the port have taken place between Canberra, Beijing, and Landbridge since the 2022 election. He noted that the Port of Darwin recorded a $9.6 million profit in the last financial year, following a $37 million loss the previous year, and criticized the government's intention to reclaim the port after it became profitable.
"The Chinese government has an obligation to protect the legitimate interests of Chinese companies overseas."
Ambassador Xiao warned that a forced removal of Landbridge from the port could negatively impact investment, cooperation, and trade between Chinese companies and Australia. Chinese Foreign Ministry spokesperson Guo Jiakun stated that the lease was obtained through market-based means and that the company's legitimate rights and interests should be fully protected.
Chen Hong, director of the Australian Studies Center of East China Normal University, noted that the legal action tests Australia's commitment to contractual commitments and international investment obligations, and that forcibly reclaiming the port without solid legal basis could harm Australia's international reputation.
National Security Perspectives
Australian Strategic Policy Institute executive director Justin Bassi argued that the port is national critical infrastructure not to be controlled by a strategic adversary. Richard McGregor of the Lowy Institute supported efforts to end the lease, highlighting that similar arrangements would not be tolerated in China.
Former Home Affairs department boss Michael Pezzullo described ending the 2015 lease as "absolutely urgent" due to national security risks and rising regional tensions.
Related Diplomatic Issues
Ambassador Xiao addressed Chinese People’s Liberation Army navy deployments near Australian waters in February and March 2025, which included live-fire exercises about 300 nautical miles south-east of Sydney. He described them as "a coincidence" and stated they were not in Australian territory or its exclusive economic zone, asserting they "had nothing to do with Australia."
Regarding Taiwan, Ambassador Xiao reiterated Chinese President Xi Jinping's commitment to reunification, stating there is "no room for compromise" on Beijing's position. He criticized Australia's Department of Foreign Affairs for making what he described as "misleading statements" by expressing concern over major Chinese military exercises conducted around Taiwan. Australia maintains support for the status quo for Taiwan and opposes any unilateral actions by Beijing to control the self-governed island.
Australia-China Trade Relations
China remains Australia's largest two-way trading partner, accounting for 24% of all goods and services trade last financial year, valued at $309 billion.
Following the initial port sale, the then-Coalition government moved to grant greater powers to the Foreign Investment Review Board. Parliament’s foreign affairs and defence committee also supported a new visa scheme to facilitate the AUKUS pact, established to counter Beijing’s influence.