China has urged Australia to respect its national security concerns and avoid "serious consequences" after a Chinese military jet carried out a "dangerous" interception of a Royal Australian Air Force (RAAF) surveillance plane.

A Chinese Foreign Ministry spokesman overnight refused to comment on the incident involving an RAAF P-8A Poseidon.

It was conducting routine surveillance in international airspace above the South China Sea on May 26 when a Chinese PLA Air Force J-16 jet flew "very close", set off flares and dropped chaff in its path, the Australian Defence Department said.

READ MORE: Chinese warplane interception shows limits of Australian power in disputed sea

But the spokesman insisted China's military conducted operations in line with international law.

"China will never allow any country to violate China's sovereignty and security in the name of freedom of navigation, and endanger peace and stability in the South China Sea," the spokesman said.

"China once again urges the Australian side to earnestly respect China's national security interests and major concerns, and to be cautious in words and deeds, so as to avoid misjudgement and serious consequences."

Prime Minister Anthony Albanese said during his visit to Jakarta yesterday the interception was dangerous and threatened the safety of the RAAF plane and its crew.

"We regard the actions of China in this area as being an act of aggression," Albanese said.

READ MORE: Why the sparsely-populated South Pacific islands have become the next US-China contest

Earlier, Defence Minister Richard Marles said the federal government had raised its concerns over the "very dangerous" intercept with the Chinese government.

The crew of the RAAF plane were unharmed and returned to base after the incident.

The Canadian government has also complained that China has been harassing its military surveillance aircraft monitoring North Korea as part of a UN mission.

But China's defence ministry said Canada should halt "any risky and provocative behaviour" or face "serious consequences".

The vast South China Sea has become hotly disputed between China and other countries, including Australia.

Tensions in the contested waters have ratcheted up since 2014 as China has turned sandbars into islands, equipping them with airfields, ports and weapons systems and warned Western warships and aircraft to stay away from them.

There have been other close encounters between Chinese and foreign warplanes over the years.

The worst of these occurred in 2001, when a Chinese fighter jet collided with a US Navy reconnaissance plane over the South China Sea.

In that case, the pilot of the Chinese F-8 fighter was killed and the US plane had to make an emergency landing on China's Hainan Island.

The 24 US crew members were held on the Chinese island for 11 days before their release.

– Reported with CNN