Australian Defence Chief Angus Campbell has denied China's allegations that an Australian Navy helicopter was engaged in espionage following a provocative encounter with a Chinese military jet.

The confrontation, involving the deployment of flares by the Chinese jet towards the Australian helicopter, took place in the Yellow Sea and has escalated tensions between Australia and China.

China initially accused the Australian helicopter of violating its airspace but later claimed it was conducting 'close-in reconnaissance', a charge that Australia and Prime Minister Anthony Albanese firmly refute.

Prime Minister Albanese and Defence Chief Campbell have criticized the Chinese jet's actions as 'unsafe and unprofessional', emphasizing that the Australian helicopter was part of a UN mission operating lawfully in international territory.

The Australian government insists that the helicopter's activities were legitimate and peaceful, linked to enforcing UN trade sanctions against North Korea, and that the Chinese fighter jet was in the wrong.

The incident has sparked a political response within Australia, with Opposition leader Peter Dutton accusing the Prime Minister of a weak response and urging stronger support for the Australian Defence Force.

The episode has reignited diplomatic tensions, with Australia labeling China's behavior as reckless and China's shifting accusations seen as contradictory and unacceptable.