Philippine President Ferdinand Marcos Jr said in his state-of-the-nation address that the Philippines would press efforts to strengthen its defensive capability by forging security alliances with friendly countries to counter threats to its territorial interests in the South China Sea, adding that his country would only settle disputes through diplomacy.

He made the remarks on the territorial conflicts before legislators, top officials and diplomats at the House of Representatives after the worst confrontation between Chinese and Filipino forces in the disputed waters last month.

Marcos’ decision to ban the Chinese-run online gambling outfits — estimated to number more than 400 across the Philippines and employing tens of thousands of Chinese and Southeast Asian nationals— came amid an ongoing government crackdown backed by Beijing.

That led to the shutdown of several sprawling complexes with dozens of buildings, where authorities suspect thousands of Chinese, Vietnamese and other nationals mostly from Southeast Asia have been illegally recruited and forced to work in dismal conditions.