Locsin seeks ending PH contract with US-banned Chinese firms involved in South China Sea reclamation

August 28, 2020

Foreign Affairs Secretary Teodoro Locsin Jr. said on Friday that he would "strongly recommend" the termination of Philippine contract with any Chinese company involved in China's reclamation in the disputed South China Sea.

In an interview by CNN Philippines, Locsin said that such company could even sue the Philippine government once the latter ends the contract.

"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. If they were in any way involved in the reclamation, then it becomes consistent on our part to terminate any contract with them," he said.

"Of course, since the contract was already entered into, they could sue us back," Locsin added.

The United States recently decided to ban Chinese individuals and companies responsible in the reclamation in South China Sea.

Washington also added 24 China state-owned enterprises to the Entity List, a tool utilized by its Bureau of Industry and Security to restrict the export, re-export, and transfer of items subject to the Export Administration Regulations to persons  reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the US.

Included in the list was the China Communications Construction Company and its subsidiaries.

CCCC has a joint venture with Lucio Tan’s MacroAsia Corp. for the construction of the Sangley Point International Airport in Cavite.

Locsin said he was not sure if any of those Chinese companies that were banned by the US have dealings with the Philippine government.

He said he would ask the the Department of Transportation, Department of Trade and Industry and the National Economic and Development Authority if they are dealing with the US-banned Chinese firms.

The Philippines has been claiming part of the South China Sea, which is being claimed wholly by China through its nine-dash line theory. China's historic and sovereign claim in almost the entire South China Sea, however, was invalidated by the United Nations Arbitral Tribunal in 2014 following Manila's petition. Celerina Monte/DMS