China accused Australia of distorting facts and using inflammatory rhetoric following a mid-air encounter between the nations’ military aircraft and urged Canberra to avoid undermining bilateral ties.

Australia's statements about an incident involving Chinese military aircraft over the South China Sea are an attempt to cover up an Australian "intrusion" into Chinese airspace, the Chinese defence ministry said on Wednesday.

China and Australia are trading accusations after a recent incident involving military aircraft over the South China Sea. Australia claims a Chinese jet dropped flares dangerously close to an Australian surveillance plane near the Paracel Islands,

BEIJING: China has issued a "stern protest" to Australia after a mid-air incident over the weekend involving military planes from the two countries, a spokesman for Beijing's defence ministry said on Wednesday (Oct 22).

Australia is capable of engaging with the Trump administration while stabilizing relations with China, Treasurer Jim Chalmers said, reiterating the center-left government’s policy of balancing the fractious superpowers.

President Donald Trump said he wants to accelerate nuclear submarine deliveries to Australia under the AUKUS agreement during White House meeting.

Australia has raised concerns with Beijing after a Chinese fighter jet dropped flares near one of its maritime patrol planes, the defence department said on Monday, labelling the incident "unsafe and unprofessional".