Skip to content

US Forced Port Sale Should Be a Guide for Australia

In one of the most incomprehensible decisions in modern Australian history, the Port of Darwin was leased to a Chinese company in 2015 by the Northern Territory government. Despite the NT government claiming that the Defence Department had not raised any red flags, everyone else, from maritime unions to the Obama administration, expressed alarm at handing over such a strategic asset to a Chinese entity.

But the Obama administration wasn’t exactly in a position to throw stones, as it signed a similar lease for one of the US’s biggest container ports in 2012.

Now the Trump administration has reversed that strategically crazy decision, in a move that should point the way for Australia to do likewise.

The Trump Administration’s Department of Homeland Security has forced China’s state-owned Cosco to sell the Port of Long Beach over security concerns.

China’s Cosco Shipping Holdings, which bought out its 75 percent–owned Hong Kong–based Orient Overseas International (OOCL), was forced to sell its Port of Long Beach Container Terminal ownership to Macquarie Infrastructure Partners for $1.78 billion.

Obama was not exactly noted for his strategic nous. He was, after all, the candidate who famously sniggered at Mitt Romney’s worries about the downgrading of America’s blue-water fleet. Fast forward a few years to China’s aggressive Pacific expansion…

One of the first major actions of the Trump administration’s Department of Homeland Security in March 2017 was issuing a “Committee on Foreign Investment in the U.S.” national security hold on Cosco’s acquisition of a former U.S. Navy port facility […]

As part of its efforts to gain asset dominance, China has directed its state-owned companies to exclusively buy products and services from other Chinese state-owned enterprises.  As a result, China International Marine Containers Group has become the world’s largest maker of shipping containers and Shanghai Zhenhua Heavy Industries has gained a 70 percent international market share for port cranes, and now exports to 300 ports in 100 countries.

americanthinker.com/blog/2019/05/trump_administration_forces_china_to_sell_the_port_of_long_beach

Unfortunately, this claw-back doesn’t go far enough: the Chinese will still pocket more than a billion while hanging on to their control for just two decades instead of four. But, it’s a start – and it should be a roadmap for the Australian government.

South Australian backbencher Nick Champion is leading the charge to “nationalise” the strategic northern access point, but the ABC has spoken to others across the political divide who share his concerns […]

At top-level talks in Sydney over the weekend, the Australian Government again joined the United States in expressing alarm over reports China is moving to establish a new military base in a Cambodian port.

abc.net.au/news/2019-08-05/push-to-nationalise-darwin-port

Then they probably shouldn’t have handed over Australia’s most strategic port.

Latest

Quick Hit

Quick Hit: Own It, Both Of You

National pledges a digital trans-Tasman trial before the 2028 T20 World Cup. Hipkins says he and Albanese agreed it in 2023. Luxon says you need National to get things done. The row is about credit, not caution. Own it, both of you.

Members Public
Cartoon: Chris Hipkins brands Split Your Vote an absolute rort on one side while leaving a Te Pati Maori pathway open on the other

Hipkins the Hypocrite

Hipkins called Harry Mowbray’s split-vote campaign an absolute rort by wealthy entrenched interests. Under MMP an overhang is a feature, not a loophole. Chippy only hates it when his mates aren’t running it. If it is absolute fraud, rule Te Pāti Māori out. He will not.

Members Public