Well, according to China, those waters are their territory, which means that the presence of foreign military vessels is an invasion.
Practically speaking, I think you could call that area a contested region, so minor skirmishes like this are expected and could escalate to war (like Crimea eventually did).
I think that the Philippines approach has been something like, ‘You can claim those waters if you want, but you can’t possibly keep us from entering them, so we’re just going to ignore you until you start killing our people, and then we’re gonna call in big brother America.’
But this is 200 years before the fall. We’re supposed to see how the Jedi lost their way. This is just a bunch of incompetent assholes with authority. The witches call them kidnappers and they barely deny it while nearly embodying it. Where’s the honor? Where’s the mysticism? Why must we continually suffer this bag of dicks while being told ‘this is what they were always supposed to be.’