US delegation urges Australia to end Chinese lease of Darwin port and boost defence budget

A visiting U.S. congressional delegation, led by Republican Michael McCaul, raised two key issues with senior Australian officials: the 99-year lease of the Port of Darwin to the China-controlled Landbridge Group and the level of Australian defence spending. McCaul argued that the port, vital for lithium exports, should be owned by Australia and suggested the government could invoke eminent domain to end the lease, a move previously promised by both major parties.

He also reiterated Washington’s expectation that defence spending rise to at least 3.5% of GDP, emphasizing investment in AUKUS pillar two technologies. Deputy Prime Minister Richard Marles cited a $117 billion defence budget increase over ten years, while the government has not yet commented on the lease. Landbridge has filed a legal challenge at the World Bank’s dispute centre, alleging discrimination. The discussion reflects ongoing U.S. pressure on Australia to curb Chinese influence and deepen security cooperation.