President Rodrigo Duterte has cleared a Davao-based Chinese businessman, who seem to be close with Chinese Ambassador Zhao Jianhua, of any link to illegal drugs.

In a speech during the dinner with the Philippine Military Academy Alumni Association, Inc. on Thursday in Malacanang, Duterte suddenly mentioned the name of businessman Michael Yang, who was allegedly engaged in illegal drugs.

He said a certain individual was supposed to expose about Yang for being a "drug pusher."

"'Go ahead,' I said. And you'd be surprised, the Chinese government will expose you," he said.

He noted that Yang has always been with Zhao, a former military man.

"The ambassador of China sleeps in his (Yang's) house. And he's part of the entourage of the Premier of China," Duterte said.

He said Yang has been doing business in Davao for a long time as he owns the Davao City Los Amigos.

Meanwhile, in a press briefing on Friday, Presidential Spokesperson Harry Roque clarified some news reports that came out interpreting that Duterte was linking Zhao to Yang, who was allegedly involved in illegal drugs.

He said those who came out with such reports should correct their story "because their story, in turn, been cited by international wire agencies, and obviously because it has gone international, it would have dire consequences for the diplomatic relations between the Philippines and China."

Duterte has been waging war against illegal drugs. Celerina Monte/DMS