China claims almost the whole of the sea and over the past year has asserted its stance by rapidly converting tiny reefs into artificial islands, with facilities for military use.
Taiwan, Vietnam, the Philippines, Malaysia and Brunei all have rival claims to the waters, which incorporate strategically crucial shipping lanes and could harbour oil and gas deposits.
Foreign minister Wang Yi stressed that China has no intention of backing down on its claims.
"I wish to reiterate here that (the) Nansha Islands are China's territory," he said in a speech to foreign diplomats in Beijing, using the Chinese name for the Spratly islands.
More From This Section
"This is fully backed by historical and legal facts," he added. "It is totally understandable for China to uphold its own territorial sovereignty and prevent its legitimate interests from infringement."
It was now "well advanced" said the Washington-based Center for Strategic and International Studies (CSIS) yesterday.
Satellite photos of another reef, Subi, where nearly four million square metres (988 acres) of land have been reclaimed, show grading work and possible runway construction is being carried out, it said.
And satellite photos taken last week show that a retaining wall has been built on Mischief Reef, creating a 3,000-metre rectangular area, with a cement plant set up, CSIS said, "suggesting another runway could be in the works".
Mischief Reef is only 21 nautical miles from Second Thomas Shoal, where the Philippines -- whose defence budget is a fraction of China's -- deliberately grounded a landing ship in 1999 to serve as a makeshift base for a contingent of marines.