I would suspect that the Diesel Subs are perfect for a nations coast guard submarine command. For deep blue long rang patrols that the Russians and Americans count on to project the MAD doctrine..........no thanks. Knee Deep navy use only IMO.
A DE on AIP is quiet! Operating on dead quiet in that mode, there are no moving parts. In that mode they are as quiet and in some cases, quiter than our nucs.
But they do not have speed or staying power and so their usefulness in the blue water is limited compared to the nucs. In addition, once they announce their presence they are toast.
Just the same, the US Navy is taking the threat very seriously. We have leased the crew and equipment of one of our allies with very quiet AIP DEs and are using them to develop counter measures and tactics against these vessels even when they are at their strongest. We dare not underestimate them...and I believe our Navy is not and will be prpared in the event of any hostilities...ie. the Formosa Straits.