The crux of the issue is this: Australia originally desired conventionally powered submarines, and in 2016, they signed a contract with France. However, in terms of the threat from China, the security situation in the region has deteriorated dramatically since then.
Nuclear submarines are significantly more powerful than conventional submarines, as well as being stealthier, having a greater range, and being able to operate for longer periods underwater. And, to meet the challenge posed by the Chinese, who are mass-producing submarines and ships, there is no choice but to invest in better technology.
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