Taiwan has recalled its envoy to the Philippines in response to what it views as an inadequate response to the shooting death of a Taiwanese fisherman.
The Philippines' representative office in Taipei on Wednesday voiced deep regret and promised to investigate the incident, but stopped short of an official apology.
Taiwan's Premier Jiang Yi-huah slammed the statement as insincere.
"We demand a formal and sincere response by the Filipino government by 6:00 p.m. this afternoon, or we will impose a second wave of eight sanction measures, effective at 6:00 p.m."
Mr. Jiang said Taiwan is requesting the Philippines representative leave Taiwan, and said a naval drill will begin a drill near disputed waters.
He also announced a hiring freeze of Filipino workers. More than 85,000 Filipinos work in Taiwan.
A Philippines Coast Guard ship opened fire on the fishing boat last Thursday in the South China Sea where both countries' economic interests overlap, killing a 65-year-old fisherman.
Taiwan and the Philippines, along with Brunei, China, Malaysia, and Vietnam all have competing claims to parts of the sea, which may be rich in oil and natural gas.