China’s port company warns Australia’s surveillance poses a serious threat

A Chinese company with a 99-year lease at Darwin’s port has warned that the Australian government’s actions could threaten foreign investors.

Landbridge, a Shandong-based company set up by billionaire Ye Cheng, was notified last month of a review of the Northern Territory’s security operations, which it bought in 2015 for $ 506m (US $ 380m). This growth followed a major breakdown in relations between Canberra and Beijing and a fall in Chinese corporate businesses in Australia since 2016, with revenues reaching $ 16.5bn.

“My problem as a foreign exchange trader is that the government has approved us, we have suffered a lot [review] work and for five years no one has come up with anything related to the problem, “Mike Hughes, Landbridge Australia general manager, he told the Financial Times.

“We are not a Chinese government, we are a business company. If this illumination forces us to sell the port agreement, this could pose a risk to foreign investors looking to Australia, not just China. ”

Arguments are dangerous controversy between Australian rabbits and commercial groups. The latter is concerned that the idea of ​​forcing Landbridge to sell the deal threatens foreign investment.

The hawks argue that allowing a Chinese company to oversee key supplies in Asia-Pacific is dangerous.

A group of 15 right-wing councilors also highlights China Merchants Group, a state-owned company with a 50% stake in Port of Newcastle, the world’s largest coal port. Last week the group called on the government to look after the port, saying the city had given “the Chinese Communist Party a chance to raise money outside of Australian coal”.

As China’s monetary policy boom grows, the opposition Labor party has criticized the way in which the independent government monitors Sino-Australia relations, saying they are promoting “patriotic ideals” because of elections.

“Negotiations on civil rights, trade reforms are over and should be stopped,” Mark McGowan, Prime Minister of Labor in Western Australia, told business leaders last week.

In May, Canberra announced that it was repeat whether to put an end to the controversial alliance of the Darwin port, which is located near the US naval base in the northern part of Australia. This follows an idea in April to block two Belt & Road Initiative agreements between Victoria and Beijing, which is President Xi Jinping’s foreign policy chief.

“My view is that when the election was held in 2015 [on the port lease] conditions were very different from what they were in 2021, “said Peter Dutton, Australia’s Minister of Homeland Security.

The idea of ​​renting Darwin’s port to Landbridge has raised concerns in Washington when the Australian Strategic Policy Institute, a thinker, says Landbridge has merged with the People’s Liberation Army and the Communist Party. Landbridge claims to be a business venture, and the criticism has not gone unnoticed.

Many experts feel that the government will need to change the treaty.

“Canberra can repay the loan within six months of security,” said Richard McGregor, a researcher at the Lowy Institute. “They could have taken the nuclear route, which is still very expensive and dangerous, and has completely eliminated rent.”

McGregor said Beijing should pay back, even though there was less Australian currency compared to China. Sanctions have been imposed in various parts of Australia.

“Reimbursement is less than the concept could pose a new risk to foreign investors in Australia,” McGregor said.

Chinese companies have been wary of harassing Australians by re-examining the relationship and damaging bilateral relations. Chinese businesses fall 61% to $ 1bn in 2020, down from $ 2.6bn last year, according to Australia National University.

Hughes of Landbridge said forced evictions are at risk of taking Asian money from Australia.

“Obviously if you’re a US company, you won’t have to worry. But you know, foreign businesses from other countries, who know how things can change in a decade or more,” Hughes said.

Researchers are divided on whether the liquidation of Darwin’s port debt could significantly affect the risk of non-Chinese companies.

“In the case of Darwin Port, there are some very special and unique things at play,” said Jeffrey Wilson, executive director at the Perth USAsia Center.

However, business leaders are urging caution and pressure on Canberra to resume relations with China, the country’s largest exporter with A $ 251bn on two trades in 2019-20. Some worry that renting a port could jeopardize relations and disrupt foreign exchange.

“There will be far-reaching consequences for China,” said Andrew Robb, a former Australian trade minister who oversees negotiations on the 2015 China-Australia trade agreement.

Robb, a paid consultant at Landbridge and other Chinese companies after leaving office, said Canberra had the right to revise the agreement by changing the circumstances.

But he warned that political relations in Australia and China have “turned into custard” and trade relations could follow.

“Sometimes its sound has not been reflected in the crisis in China,” Robb said. “There are some things that have been planned for many years in China, such as saving history.”