Defence Minister Richard Marles revealed on Sunday a Chinese J-16 aircraft flew dangerously close to a RAAF P-8A Poseidon conducting routine surveillance in international airspace on May 26.
In flying close to the side, the J-16 released flares then accelerated and cut across the nose of the P-8, settling in front of the Australian aircraft at very close distance.
The Chinese aircraft then released a bundle of chaff which contained small pieces of aluminium, some of which were ingested into the engine of the P-8 aircraft.
The Poseidon then ended its mission and returned to base.
The Australian government has raised concerns with Beijing saying it had threatened the safety of the crew in what was a "very dangerous" incident.
Mr Marles told Sky News on Monday surveillance missions were within Australia's rights and would continue as the nation sought to ensure the "rules-based order" was upheld in the region.
However, the Chinese Communist Party-controlled Global Times said the Australian aircraft "likely made provocative moves".
"It is possible that the Australian P-8 was about to enter or even did trespass on Chinese airspace, or it is also possible that the aircraft disrupted PLA maritime exercises in a dangerous manner," the newspaper quoted analysts as saying.
"If the Chinese aircraft did use flares and chaff, it is possible that the Australian P-8 used its jamming pod to lase the Chinese aircraft, triggering the latter's self-defence system."
An angry editorial in the Global Times on Monday accused Australia of "deliberately" concealing key details of the incident.
"Where exactly in the South China Sea is the area in which the incident occurred? How far is it from the Chinese islands and reefs in the region? What is their purpose here? Furthermore, what did the Australian military aircraft do before the intercept," the article reads.
Deputy Liberal leader Sussan Ley said the former Morrison government had been "very strong on China".
"Sometimes we were criticised for this ... but it was an issue that we never took a backward step on," she told Sky News.
"It's important that we see exactly the same approach from the prime minister."
