Why did the Chinese population of the Northern Territory decline after 1888?

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The Chinese population in the Northern Territory reached a peak of slightly more than 7,000 individuals in 1888. Following this year, the population experienced a steady decline primarily due to the implementation of restrictive immigration policies.123

While these policies curtailed further arrivals, Chinese residents continued to play a significant role in the region's economy, maintaining a dominant presence in the goldfields and various business sectors in the northern part of the territory for some time thereafter.23