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Inside the Australian port at the heart of China-US power struggle

Inside the Australian port at the heart of China-US power struggle

Telegraph4 days ago
Down a sandy, dirt road on the outskirts of Darwin in Australia's Northern Territory lies one of the US and Australia's most important military assets – but there's a catch.
Written in large letters high above the entrance are the words 'Landbridge Darwin Port' in Chinese.
One part of the harbour here – the largest in Australia's largely uninhabited northern coast – hosts the key naval base HMAS Coonawarra, where some of the world's largest warships have docked, including, most recently, the UK's HMS Prince of Wales.
The other part, however, is occupied under a 99-year lease by Landbridge Group, a Chinese company whose billionaire owner, Ye Chang, has close ties to the ruling communist party.
The Australian government has been working behind the scenes to bring the port under domestic control amid growing fears of a war in the Indo-Pacific. It would be central to any future conflict between China and Taiwan.
And as one UK defence source told The Telegraph this week, threat levels in the Indo-Pacific are the 'highest in the world'.
A Telegraph request to visit the commercial port was denied by the Chinese owners. When we approached the gates and asked to enter, we were turned away.
The ownership of the commercial port has been embroiled in controversy since the lease was signed in 2015.
Successive Australian governments have highlighted the risks of a Chinese company controlling such a strategically important military asset, and have vowed to bring it back under Australian control, but to little avail.
The presence of a Chinese company with prying eyes stationed so close to the naval base has meant the US and Australia have been concerned about expanding their military operations at Darwin. They don't want to run the risk of classified intelligence or military assets – such as fighter jet parts - being handled by a Chinese-owned port operator.
For now, China, maintains the upper hand over the port through Landbridge. That, however, hasn't stopped the US and its allies from building up their presence elsewhere in Darwin as part of a greater strategy to spread out and reinforce troops across the Indo-Pacific.
'Darwin is the front door for Australia and our military into the region,' Michael Shorbridge, a former Australian intelligence officer, said.
Location key to preventing war
Darwin's strategic role in the Indo-Pacific has long been on display during Australia's annual military exercises known as Talisman Sabre. This year, the drills were the largest yet, with tens of thousands of troops involved from 19 countries, including the US and the UK.
Vice Admiral Justin Jones, the chief of joint operations with the Australian Defence Force, said over the weekend that one of the objectives of the exercises was to 'test our posture' by 'force flowing all of those 42,000 people and assets into the country and out again'.
Darwin's significance isn't only hypothetical – building up capabilities in Darwin and elsewhere in the region could be key to preventing a war over Taiwan altogether. China, which claims sovereignty over Taiwan, has threatened to use force to 'reunify the motherland'.
The government in Taipei strongly rejects Beijing's claims, but persistent threats and increasing use of coercion by Xi Jinping, the Chinese president, have turned the Indo-Pacific into one of the world's most highly anticipated flashpoints.
'A key part of the foreign policy… is to stop a potential Chinese invasion of Taiwan in the first place by deterring it and all the bases throughout the Pacific are a means of providing that deterrent effect,' said Neil James, the executive director of the watchdog organisation Australia Defence Association.
However, if deterrence doesn't work, Darwin's strategic location would make it invaluable to the US and its allies in a potential conflict.
While US bases in Japan, the Philippines and Guam would be closer to any such conflict, it would not be advantageous to have all assets stationed close to the front line.
'Darwin is one of a string of pearls for the US and allies to use…There isn't one magical answer. The strategy of dispersal is to complicate China's planning by having multiple ports and bases to operate from,' said Mr Shoebridge, who now works as director of Strategic Analysis Australia, a think tank.
While Darwin is closer to the Indo-Pacific than the continental US or Europe, at close to 3,000 miles from the Taiwan Strait, it is still far enough away to remain protected in a conflict.
It would also provide an optimal base from which the US and allies could resupply and refuel.
'If you think about a protracted war, the United States needs military assets and supplies that are further away from north-east Asia, and Australia would be the centre of the depth and strategy that the US and allies need to have,' said John Lee, a senior fellow at the US-based Hudson Institute and a former Australian national security adviser.
US marines prepare for escalation
With its location at the southern tip of the Indo-Pacific, The US has long recognised the strategic value in Darwin's location at the southern tip of the Indo-Pacific.
Since 2012, the US military has partnered with Australia's military to host a programme known as Marine Rotational Force-Darwin (MRF-D). US marines are deployed to Darwin for half the year to train in the Pacific alongside Australian counterparts and better prepare for any conflict.
At a static training session at Robertson Barracks, about a 30-minute drive from central Darwin, The Telegraph watched as the marines learned how to use different guns, including mortars, machine guns and Sabre missile systems, that can fire as far as 4,500 metres.
It's a rare opportunity for marines from different platoons to learn how to use weapon systems that they wouldn't normally employ.
Normally, platoons are only taught how to operate one type of weapon until much later on in their service. This training – being taught for the first time this year – is unique to MRF-D and a testament to the US military's investment in Darwin.
'It's about making sure that all the facilities, the customs and port and government arrangements that allow US forces to operate easily through Australia are in place and smooth and practised,' said Mr Shoebridge. 'So that they're not doing it for the first time during a conflict or crisis.'
MRF-D started with the deployment of only 200 marines but it has grown to a deployment of 2,500 personnel with a full command element, which is indicative of the 'shift towards the Pacific', said Capt Johnny Fischer, MRF-D's director of communication strategy and operations.
While Capt Fischer isn't able to speak about specific scenarios or conflicts, he told The Telegraph that this year was the first time that the marines had a 'persistent presence in the Philippines', further evidence of the pivot to the Indo-Pacific.
MRF-D participated in both Balikatan and Kamandag, two joint US-Philippines major military drills held annually in the Philippines, and has also been expanding its joint training with Philippine Marine Corps as well as Japan's Ground Defence Forces.
'This is the most dynamic, complex and forward-postured MRF-D in the 14 years that the rotation has been coming out here,' said Capt Fischer.
China watching closely
While efforts are being made by the US, Australia and allies to build up Darwin's capacity and capabilities, experts say that it remains inherently limited by China's involvement in the critically important port.
However, there have been several government-led reviews into the risk level and so far all have determined that the 'there is a robust regulatory system in place to manage risks' and it is therefore 'not necessary to vary or cancel the lease'.
Terry O'Connor, the non-executive director for Landbridge in Australia, told The Telegraph that these reviews 'reaffirm our position that there is no basis for security concerns given the port is operated as a commercial enterprise in accordance with Australian law and the port transaction documents'.
Military veterans stress, though, that these investigations tend to only look at factors such as espionage and surveillance, and don't account for the ability to develop the port as well as its use in a potential conflict.
'This is not about sneaky, nefarious people crawling around the port in Darwin. This is about the opportunity cost to Australia's military and our military partners and allies in not being able to use this piece of prime port real estate in the middle of Darwin harbour,' explained Mr Shoebridge.
While Darwin harbour is not as large as other ports in Australia, it's the largest on the north coast and the commercial portion that is operated by Landbridge is in deeper waters and therefore more strategically valuable.
'Our partners and allies don't want to risk classified items being subject to handling by a Chinese-owned port operator, so we're not able to use the best port facility in Darwin to maximum effect,' said Mr Shoebridge.
'If you've got parts for an F-35 that are coming in via ship and you're going to move them through the port, you've got a chain of custody problem with who handles these highly controlled, top secret items. The last thing you want to do is give potential insights to a potential adversary like the Chinese military.'
Those in favour of Landbridge's management, have also pointed out that Australian law stipulates that in the event of a war, the government is able to take back control of the port, but Mr James notes that this would be too little, too late.
'If we decide that Chinese control of the port is not a good idea and we try to rescind the lease, that is going to be escalatory,' he said.
'We're better off taking the port back as soon as we can to avoid that future escalatory risk.'
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