Australia committed a huge 'diplomatic error' by cancelling submarine deal: French envoy

France has previously branded the cancellation of the deal - valued at $40 billion in 2016 and reckoned to be worth much more today - a stab in the back.

Melbourne/Paris: Australia has made a "huge" diplomatic error by ditching a multi-billion-dollar order for French submarines in favour of an alternative deal with the United States and Britain, France`s envoy to Canberra said on Saturday (September 18).

Canberra announced on Thursday (September 16) it would scrap its 2016 deal with France`s Naval Group to build a fleet of conventional submarines and instead build at least eight nuclear-powered ones with US and British technology after striking a trilateral security partnership.

The move caused fury in France, a NATO ally of the United States and Britain, prompting it to recall its ambassadors to Washington and Canberra, and also riled China, the major rising power in the Indo-Pacific region.

Malaysia said on Saturday (September 18) that Canberra`s decision to build atomic-powered submarines could trigger a regional nuclear arms race, echoing concerns already raised by Beijing.