As Philippine President Rodrigo Duterte rejected his foreign secretary’s strong recommendation to end business deals with Chinese firms that built artificial islands in the South China Sea, an analyst said banning these companies would make them accountable for their “crime against humanity”.

Chinese envoy to Manila Huang Xilian praised Duterte’s pursuit of an independent foreign policy and said, “the pragmatic cooperation between China and the Philippines has always been based on mutual respect, mutual benefit and win-win results, and all projects are all conducted in compliance with the existing laws and regulations….I believe that any attempt to undermine the normal economic cooperation between China and the Philippines will never succeed.”
In an interview with a local radio station, Huang also said, “The participation of Chinese companies and individuals in domestic construction activities is legitimate, lawful and beyond reproach, lies entirely within its sovereignty. The move by the US side, under the pretext of protecting the South China Sea, grossly interferes in China’s internal affairs and aims to drive a wedge between China and regional countries.”

On August 26, the US commerce department announced sanctions on 24 Chinese state-owned companies that had played a “role in helping the Chinese military” build up seven South China Sea reefs into islands with military installations. These firms would be banned from buying US technology and products and doing business with US corporations.

Two days later, Philippine foreign secretary Teodoro Locsin, Jnr. told CNN Philippines that if any of these Chinese companies have government contracts or are in any way involved in the reclamation of the islands, “then I would strongly recommend we terminate that relationship with that company”.

https://www.scmp.com/week-asia/politics/article/3099793/south-china-sea-duterte-rejects-call-drop-contracts-chinese