A cloud of debris entered the engine of the Australian plane after a Chinese fighter jet flew in front of it.
The ministry said the incident took place over the South China Sea. China has been trying to gain a strategic advantage in the South China Sea.
According to Richard Marless, Australia's defense minister, a Chinese J-16 fighter jet cut across an Australian Air Force P-8 maritime patrol aircraft and released small pieces of metal debris.
The J-16 cut across the nose of the P-8 and settled in front of the P-8.
Some of the aluminum that was released into the air was used in the engine of the P-8 plane. This is a very dangerous thing.
According to a former Australian Air Force officer, the incident would have forced the P-8 to return to base.
Foreign aircraft that fly over the South China Sea are frequently interfered with by Chinese aircraft.
Australia has accused China of election interference.
The Global Times called the Australian aircraft "provocative" and rubbished claims that Chinese military planes had recently "buzzed" a Canadian plane.
The intercept posed a safety threat to the P-8 aircraft and its crew, according to Australia's defense ministry.
The right to freedom of navigation and overflight in international waters and airspace has been exercised by the defense for decades.
Australia claimed a Chinese military vessel pointed a laser at another P-8 patrol aircraft to try and distract the pilot.