China immediately blamed Manila for the incident, claiming the Philippine vessel had entered waters near Sandy Cay and dangerously approached their ship, AFP reported.
Confrontations between Philippine and Chinese vessels occur frequently throughout the contested waterway.
Beijing claims nearly the entire South China Sea.
The Philippines stated a Chinese coast guard vessel fired its water cannon at the BRP Datu Pagbuaya at 9:15am on Sunday.
Just three minutes later, the same Chinese vessel deliberately rammed the stern of the Philippine boat.
This collision caused minor structural damage but no injuries to the crew members.
Manila’s coast guard confirmed the incident occurred near Thitu Island in the Spratly Islands.
China’s coast guard spokesman Liu Dejun asserted full responsibility lies with the Philippine side.
Photos and videos released by the Philippine Coast Guard showed a Chinese vessel shadowing their ship with its water cannon activated.
The Philippine Coast Guard declared they will not be intimidated or driven away despite these aggressive actions.
This incident represents the latest in a series of recent flare-ups between Beijing and Manila.
The South China Sea serves as a busy waterway for more than 60% of global maritime trade.
Last month, a water cannon attack by a China Coast Guard vessel injured one Philippine crew member near Scarborough Shoal.
In August, a Chinese navy vessel collided with its own coast guard ship while chasing a Philippine patrol boat.
China seized control of the fish-rich Scarborough Shoal from the Philippines after a 2012 standoff.