China’s Defense Chief Sanctions:
Maritime Cooperation Over Retaliation on Arbitral Ruling’s 10th Anniversary

By Rommel Banlaoi

China’s sanctions against Philippine Defense Secretary Gilberto Teodoro Jr. marking the tenth anniversary of the arbitral ruling on July 12, 2026 add fresh complications to efforts to reset ties between Manila and Beijing. The measures, which bar Teodoro and his family from entering China, Hong Kong, and Macao, and prohibit Chinese organizations from engaging with them, were described by the Philippine Department of Foreign Affairs as “unfriendly.” These developments underscore the enduring friction between the two nations, even as both sides publicly seek ways to improve relations after a decade of tension in the West Philippine Sea.

Sanctions highlight the fragility of the diplomatic climate. To prevent further escalation, both sides must pursue reconciliation. Beyond contested waters, trade, investment, infrastructure, and regional stability are shared interests. Yet the decisive test lies at sea. Maritime cooperation and ocean governance are essential for security, prosperity, and environmental stewardship. Allowing disputes to dominate risks undermining the partnership and forfeiting leadership in shaping a cooperative regional order.

The Case for Reconciliation

The Philippines has legitimate sovereignty concerns, while China views its claims as central to national identity. These positions will not change, but prolonged hostility benefits neither. China remains a major trading partner, and the Philippines is strategically vital in Southeast Asia. Reconciliation means managing differences without abandoning principles.

Manila can assert its rights under international law, particularly the 2016 arbitral ruling, while avoiding actions that inflame tensions. China must also recognize that sanctions can erode confidence-building and hinder dialogue. Both sides must show maturity and restraint if they are serious about resetting ties.

Practical Steps Forward

Direct dialogue is the most urgent requirement. Strengthening communication between foreign and defense ministries prevents misinterpretations, while regular consultation channels ensure disagreements are addressed before they escalate.

Confidence-building initiatives should also be sustained. Joint projects in education, culture, and people-to-people exchanges foster goodwill and remind both sides of the broader value of cooperation. These efforts may not resolve disputes immediately, but they build lasting trust that makes resolution easier.

Issue-specific mechanisms are another practical step. The Bilateral
Consultative Mechanism (BCM) provides a structured platform to address maritime disputes while keeping economic cooperation on track. This can prevent disputes from paralyzing their ties and demonstrate that both countries can manage their differences.

Maritime cooperation and ocean governance should be central to these mechanisms. Joint efforts in environmental protection, fisheries management, scientific research, search-and-rescue, disaster response, and anti-piracy can transform contested waters into shared spaces of collaboration.

Mutual restraint is also vital. Public rebukes and sanctions harden positions, while rhetoric aimed at domestic audiences can reverberate internationally and complicate diplomacy. Leaders must weigh their words carefully to maintain space for dialogue.

Finally, ASEAN can play a constructive role by offering both parties an opportunity to recalibrate relations without losing face. Regional mediation, including the ongoing negotiation of a Code of Conduct in the South China Sea, can complement bilateral efforts and reinforce norms of responsible ocean governance.

Conclusion

China’s sanctions underscore the fragility of bilateral ties, with sovereignty central to Manila and national pride driving Beijing’s claims. While disputes are inevitable, they need not define the relationship. Flexibility, dialogue, and compromise are essential to prevent differences from overshadowing opportunities for cooperation and stability. Political gestures, such as the recent welcome of State Secretary Marco Rubio in Beijing despite prior sanctions, highlight how inconsistency can complicate trust.

True reset lies in reconciliation rather than retaliation, with the maritime domain as the decisive arena. Cooperation in ocean governance, fisheries management, and environmental protection can transform contested waters into shared platforms of prosperity. Joint efforts to safeguard ecosystems and uphold freedom of navigation would serve as the litmus test of sincerity, proving whether both nations can transcend disputes and move beyond zero-sum thinking.

Rommel C. Banlaoi, PhD, is Non-Resident Fellow of the Huayang Center for Maritime Cooperation and Ocean Governance. A former Adjunct Professor at the National Institute for South China Studies, he is also the Director of the Philippines-China Studies Center at Diliman College.