(Bloomberg) — Beijing is “watching very closely” how Canberra handles the status of a port currently leased to a Chinese firm that the Labor government has pledged to return to local control, and will step in if necessary, China’s envoy to Australia said. If the port was taken back via forced sale, Beijing has an “obligation to protect the legitimate rights of Chinese companies overseas,” Ambassador Xiao Qian told reporters in Canberra on Wednesday. The lease of Darwin port to Chinese firm Landbridge Group is an ongoing point of contention between the two nations, which have otherwise significantly improved ties since Prime Minister Anthony Albanese first won office in 2022. The Port of Darwin is Australia’s northernmost maritime facility and sits just south of Indonesia and Southeast Asia more broadly. “At the same time, I’d like this issue to be properly managed” to show Australia welcomes investment from Chinese firms, he said.