Australian Prime Minister pledges to reclaim Darwin Port as China's RCL Group launches international lawsuit

The Chinese company controlling Darwin Port has initiated an international legal action, marking a dramatic escalation in its struggle to maintain long-term lease rights over this strategically vital asset. Both the Australian Labor Party and the Coalition had previously pledged during last year’s election to revoke RCL Group’s 99-year lease on the port and return it to Australian control, citing national security concerns as paramount.

However, the promise has now been cast into uncertainty after RCL Group Chairman Ye Cheng decided to file a lawsuit with the International Centre for Settlement of Investment Disputes (ICSID), a prestigious arbitration body under the World Bank Group established in the 1960s to resolve disputes between international investors and states.

According to reporting by The Sydney Morning Herald, the Chinese billionaire filed the lawsuit on April 23, arguing that Australia’s efforts to terminate its lease on Darwin Port should be blocked as they violate provisions in the Australia-China Free Trade Agreement.

Darwin Port was leased to RCL Group in 2015 for AUD 506 million. Located directly opposite the Larrakeyah military precinct in Darwin City, the port has sparked calls for its ownership to be returned to Australia.

Catherine King, Australia’s Minister for Infrastructure, Transport, Regional Development and Local Government, stated: “The government is disappointed by this decision and will proceed with our case according to established procedures.”

Ms. King added, “For several months, the government has been engaging in good-faith negotiations with RCL Group, aiming to reach a mutually acceptable agreement to return ownership of Darwin Port to Australia. We intend to continue these discussions.”

She emphasized that the government has consistently pursued talks in a “respectful and private manner,” asserting that publicizing the dispute would not serve the interests of either party. She reiterated, “The government remains committed to returning Darwin Port to Australian hands.”

In a statement, RCL Group said the federal government’s proposed method of returning Darwin Port to Australia “is discriminatory and inconsistent with Australia’s obligations under the China-Australia Free Trade Agreement.”

The company noted, “RCL Group acquired the port’s interests through fair, open, and competitive processes, fully complying with all applicable Australian laws and regulatory requirements. Multiple reviews conducted by the Australian government have confirmed there are no national security concerns.”

The company further stated, “RCL Group has engaged in dialogue with the federal government in pursuit of a constructive solution, but unfortunately, dialogue alone has not yielded satisfactory results. At this stage, RCL Group is taking necessary measures to protect its legitimate rights and interests.”

RCL Group urged the Australian government “to refrain from any actions detrimental to RCL’s interests prior to resolution of the dispute” and to grant the company “adequate opportunity to have its claims heard and adjudicated before appropriate legal institutions.”

“Throughout the resolution process, RCL Group will continue operating Darwin Port to the highest standards and welcomes the opportunity to further communicate with the federal government,” the company said.

Both the Australian Labor government and the opposition had previously pledged that whoever wins the upcoming election will repurchase Darwin Port from the Chinese company, which currently holds a 99-year lease.

During last year’s election campaign, Prime Minister Anthony Albanese hastily connected with ABC Darwin radio after being notified, promising to reclaim the port in an effort to beat out then-opposition leader Peter Dutton in announcing a similar commitment.

The Chinese government has opposed Australia’s attempt to regain control of Darwin Port, warning that such a move could jeopardize bilateral relations. Speaking about the plan to reclaim the port, Albanese said, “We are committed to ensuring the port returns to Australian hands because this aligns with our national interest.”

Source: rfi

Original: toutiao.com/article/1864002208088323/

Disclaimer: This article reflects the personal views of the author