MANILA, Philippines — The Philippines has formally criticized the Chinese embassy in Manila following warnings that worsening bilateral relations could jeopardize millions of jobs, escalating tensions amid ongoing disputes in the South China Sea.
The Department of Foreign Affairs (DFA) said Monday it took “strong exception” to the embassy’s statement, accusing Beijing of implying that economic cooperation could be leveraged as a tool for political pressure. “This framing risks being perceived as coercive and undermines constructive bilateral dialogue,” the DFA said.
The dispute stems from a recent academic forum in which Philippine Coast Guard Commodore Jay Tarriela presented a caricature of Chinese President Xi Jinping. Beijing’s embassy demanded that Tarriela be held “accountable” for what it called “smears and slanders,” prompting a strong rebuke from the Philippine Senate.
Lawmakers passed a resolution condemning the embassy’s intervention as “improper” and affirmed that Tarriela was acting within his official duties. Some senators also called for the expulsion of Chinese embassy officials or the recall of Ambassador Jing Quan.
A spokesman for the Chinese embassy, Ji Lingpeng, issued a warning stating that “any serious damage to diplomatic relations, including downgrading of those relations, would cost millions of jobs.”
In response, the DFA urged the embassy to “adopt a responsible and measured tone in public exchanges,” while emphasizing Manila’s continued commitment to diplomatic engagement despite “continued illegal, coercive, aggressive and deceptive activities” by China in the South China Sea. Deputy Assistant Secretary Rogelio Villanueva Jr. said, “We are committed to managing the situation at sea peacefully.”
Manila-based Stratbase Institute dismissed the Chinese warning over job losses as “exaggerated and not supported by empirical evidence,” citing Philippine central bank data showing that Chinese foreign direct investment inflows totaled just $3.1 million in the first eleven months of 2025—a decline of more than 50 percent from the previous year. China accounted for only 0.55 percent of total net investment inflows into the Philippines in 2024.
While China remains the Philippines’ largest source of imports, the United States continues to be the country’s top export market, highlighting an asymmetry in the trade relationship.
The rebuke comes amid broader maritime tensions between the two countries over contested areas in the South China Sea. China has repeatedly been accused of conducting dangerous maneuvers against Philippine vessels, including deploying water cannons and obstructing resupply missions to Filipino-held outposts. China, in turn, claims the Philippines is intruding on what it considers sovereign territory.
A 2016 ruling by the Permanent Court of Arbitration in The Hague invalidated China’s expansive claims in the South China Sea under international law, a ruling Beijing has refused to recognize.
The Chinese embassy did not immediately respond to requests for comment.
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