The Northern Territory's Giles government leased the port to Chinese company Landbridge in 2015.
The department determined there was "no national security risk" to justify stripping Landbridge of the lease, despite deepening tensions between Canberra and Beijing."Any Chinese company if instructed by Beijing must engage in spying or other nefarious activity," he said.It leaves the Morrison government in a delicate diplomatic balancing act.
The NT government says if the Commonwealth wants to spend more than $500 million in the Territory, it should invest in things that will generate new jobs rather than sending cash overseas.
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