"If anything happens, like the port will be taken back by force or forceful measures, then we have obligation to take measures to protect the Chinese company's issues. This is our position," he told reporters at the Chinese Embassy in Canberra on Wednesday.
"Should Landbridge be forced to leave that port, I think it might also affect the substantive investment co-operation trade between Chinese companies with that part of Australia.
Beijing progressively removed the sanctions worth $20 billion after Labor came to office in 2022.
The port was leased in 2015 by the Northern Territory government to the Chinese-owned company, which immediately raised concerns about one of Australia's most strategic assets.Xiao Qian has flagged potential economic sanctions for Australia over the Port of Darwin. (Lukas Coch/AAP PHOTOS)
Both Labor and the coalition promised to bring the port back to Australian ownership during the election campaign.
Mr Albanese reiterated his pledge in Darwin on Tuesday, with a deal yet to be finalised.
"There are commercial negotiations and those commercial negotiations are continuing," he said.It’s the little things that make Viking unforgettable
Australian National University associate professor Graeme Smith said Mr Albanese was unlikely to be taking this step solely for political gain, but noted a "performative element".
"China will have to do something if we (Australia) take back the Port of Darwin and trade sanctions do look the most likely to happen now," he told AAP."The NT government leased the Port of Darwin to a Chinese-owned company in 2015. (Jono Searle/AAP PHOTOS)"