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The UK, US and Australia have announced a historic security pact in the Asia-Pacific, in what's seen as an effort to counter China.
It will let Australia build nuclear-powered submarines for the first time, using technology provided by the US.
The Aukus pact, which will also cover AI and other technologies, is one of the countries' biggest defence partnerships in decades, analysts say.
China has execrated the agreement as "extremely irresponsible".
China's embassy in Washington accused the countries of a "Cold War mentality and ideological prejudice".
The pact also created a row with France, which has now lost a deal with Australia to build 12 submarines.
"It's really a stab in the back," France's Foreign Minister Jean-Yves Le Drian was quoted as saying, albeit the Leaders of the member countries of the afore-mentioned strategic partnership, put emphasis on the "solid relation" with France.
In recent years, Beijing has been accused of raising tensions in disputed territories such as the South China Sea and East China Sea.
The Aukus alliance is probably the most significant security arrangement between the three nations in the post WWII scenario, the analysts say.
"This is an historic opportunity for the three nations, with like-minded allies and partners, to protect shared values and promote security and prosperity in the Indo-Pacific region," the joint statement read.
Western nations have been wary of China's infrastructure investment on Pacific islands, and have also criticised China's trade sanctions against countries like Australia.
Australia had in the past maintained good relations with China, its biggest trading partner. But the relationship has broken down, of late, amidst political tensions.
But there is tension now too with France, after Australia tore up the A$50bn (€31bn; £27bn) deal to build 12 submarines.