They can suggest cooperation, I believe this is what China is asking the Philippines, its just these news writer are exaggerating facts and using more stimulating words for their readers to react.
Even so, they should know what will be the effects of it to the Philippine Government, the fact that these Casinos are one of the big payers of taxes, we already have a good reason why it shouldn't be accepted...
Moreover the Chinese Government should eradicate their issues by stopping their own men to live outside their country, but I doubt it will happen. Philippines is already an open country so the foreign countries will be the one who should first make a move regarding to their own people.
Of course, China has hidden agenda behind this statement. I guess Philippines government will not agree and will not accept the intervention of China with regards to handling business like online casinos in their own country.