Manila, Aug. 16 -- Defense Secretary Gilberto Teodoro Jr. has accused China of using a "squid tactic" to evade key issues surrounding the arrest of Chinese nationals in the Philippines, while rejecting what he described as a threat to retaliate against Filipinos.

In a statement, Teodoro said the Chinese Foreign Ministry continued to avoid two central questions: Whether the Chinese nationals arrested in the Philippines were involved in illegal activities and whether Chinese embassy officials intervened in local law enforcement processes and threatened retaliation against Filipinos.

"The first question is: Were these individuals involved in illegal activities? The plain and simple answer is yes," Teodoro said, citing evidence gathered by...