Locsin to recommend termination of contracts with Chinese companies involved in South China Sea island reclamation

Foreign Affairs Secretary Teodoro Locsin Jr. on Friday said he would recommend the termination of contracts with Chinese companies involved in the massive island-building in the disputed South China Sea territories, a day after the United States announced punitive measures against such firms.

“If I find that any of those companies are doing business with us then I would strongly recommend we terminate that relationship with that company,” Locsin said on CNN Philippines.

The US on Wednesday said at least 24 state-owned Chinese companies, including subsidiaries of the China Communications Construction Company (CCCC) helped Chinese military “construct and militarize the internationally condemned artificial islands in the South China Sea."

These firms, Washington said, “must be held responsible” and that individuals connected to these firms, including their immediate family members, will be barred from entering the US.

“If they were in any way involved in the reclamation then it becomes consistent in our part to terminate any contract with them,” Locsin said.

However, he warned that these companies may sue the Philippines if a contract has already been signed.

China, which claims a huge swathe of the South China Sea as part of its territory, beefed up its reclamation activities in disputed areas and transformed previously submerged features into artificial islands with multi-level buildings and runways. It has also installed surface-to-air missiles in these areas, triggering concerns from countries, such as the US, Japan and Australia.

The Philippines in 2013 challenged China’s legal basis for its expansive claim before the Permanent Court of Arbitration in The Hague, Netherlands, and won the case in a landmark award in 2016 after the tribunal invalidated Beijing’s assertions.

Beijing has ignored and belittled the ruling, maintaining “indisputable” and “historical” claim over nearly the entire waters even as it encroaches on the territories of its smaller neighbors like the Philippines. China has also claimed and developed some features within the West Philippine Sea. — RSJ, GMA News