Foreign Secretary Teodoro Locsin Jr said in a statement: "Do not impinge on Philippine territory."

Teodoro Locsin Jr said since July 1 China's People's Liberation Army has been staging exercises off the Paracel Islands.

"Should the exercises spill over to Phillipine territory than China is forewarned that it will be met with the severest response, diplomatic and whatever else is appropriate," he warned.

This is one of the strongest warnings given by the nation to China in recent times.

He said the country will continue to look at China as 'nearest and biggest' trading partner.

"We call the erring partners to refrain from escalating tensions," he said.