I might be Chinese by blood, both of Cantonese and Hokkien ancestry but one thing is for sure, anybody who is an illegal settler must be dealt with accordingly in any country and illegal Chinese are not an exception to the rule. Guilty is guilty and that's the rule that must be followed. So what's wrong with the illegal Chinese problem? While Chinese migrants who settle across the world and become law abiding citizens must be respected and treated well, illegal Chinese are an issue that really needs to be taken care of. They are no laughing matter and might be worse than how Flash Gordon portrays Ming the Merciless or Iron Man portrays Mandarin. They ruined the image of good Chinese before, they can do it again.
So why deal with them as well? Like it or not, they would purposely look for a third world country to settle where lawlessness prevails. After all, their territory will flourish better in a country like the Philippines (or look for other worse places) than in territories like Singapore and the United States. For example, Adrian Lim in Singapore was executed along with some of his henchmen after their crimes were examined worthy of death and the U.S. has caught a good amount of those financial swindlers last 2007 save the masterminds who were able to get away. In China, the drug hunt usually captures the masterminds if they continue to stay in China. But in a third world country in general, they can continue to expand their territory. In third world countries, when they flourish they can easily pay the authorities to be silent about their activities. Also, there's a lot of people who they can use in syndicates like those drug mules that got executed in China.
One might also want to consider these reasons as well. They don't pay taxes that means they don't help the Philippines progress compared to decent Chinese investors. Also, many of them might the be the real masterminds of kidnap for ransom gangs while using third world locals to do their dirty work. They could also be behind drug dealing which has ruined the youth in their territory. They could be hiding from Chinese authorities who want to execute them badly for all the crimes they did in China (no system is perfect, even Singapore admits its shortcomings). Worse, a lot of them don't care how much life they screw up as long as they get money. Yet the problem is that in the Philippines, they might actually be getting protection for all the people know because of a corrupt government.