Chinese ambassador criticises plan to return Darwin Port to Australian ownership

SYDNEY (Reuters) - China's ambassador to Canberra has criticised the Australian government's intention to return Darwin Port to local ownership, saying the Chinese company running the strategically located northern port should not be punished.

Prime Minister Anthony Albanese said in April during the election campaign that his government was working on a plan to force the sale of Darwin Port from its Chinese owner on national interest grounds.

Australia sold the commercial port on a 99-year lease to Chinese company Landbridge in 2015, a move that was criticised by the U.S. president at the time, Barack Obama. Around 2,000 U.S. Marines exercise for six months of the year in the northern city.

Ambassador Xiao Qian said Landbridge Group had invested in the port and contributed to the local economy, according to a statement on Sunday by the Chinese embassy.

"Such an enterprise and project deserves encouragement, not punishment. It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable," the statement said.

Albanese said in an Australian Broadcasting Corporation radio interview in April that his government wants the port to "be in Australian hands", and would directly intervene and buy the port if it was unable to find a private buyer.

Landbridge said last month the port was not for sale.

Australia is building up its northern military bases, which will host U.S. bombers and fighter jets on a rotational basis, as it increases defence cooperation with the United States.

(Reporting by Kirsty Needham in Sydney; Editing by Nia Williams)