Five years ago, Australia’s defense chief dismissed worries over a Chinese company leasing a port used by U.S. Marines as "simply absurd.” Now the government in Canberra is weighing whether to force a sale due to national security concerns.
Defence Minister Peter Dutton confirmed over the weekend that his department will advise the government on what to do with the port. Asked whether the government would consider forced divestiture, he told the Sydney Morning Herald that officials would consider the national interest.
The decision risks further hurting China-Australia ties, which have plummeted since Prime Minister Scott Morrison called for an independent investigation into the origin of COVID-19 and strengthened defense ties with the U.S., India and Japan. It will also have ramifications far beyond Australia as the U.S. pushes countries to avoid cutting deals with Chinese companies on strategic infrastructure investments, from ports to undersea cables to 5G networks.