In its most detailed assessment to date of China's island-building program, the Defense Department said three of the land features in the Spratly Islands now have nearly 10,000-foot runways and large ports in various stages of construction.
And it has excavated deep channels, created and dredged harbors, and constructed communications, logistics and intelligence gathering facilities.
"This would improve China's ability to detect and challenge activities by rival claimants or third parties, widen the range of capabilities available to China, and reduce the time required to deploy them," according to the report released today.
"China is using coercive tactics short of armed conflict, such as the use of law enforcement vessels to enforce maritime claims, to advance their interests in ways that are calculated to fall below the threshold of provoking conflict," the report adds.
Lu said China has lodged a formal protest with Australia
over the comments of Foreign Minister Julie Bishop who has stated that Canberra would keep exercising its international rights to freedom of navigation and overflight and support others to do the same in light of the tribunal's verdict.
Asking Australia to join the "majority of the international community" in not recognising "illegal outcome" of the verdict, he said China respected freedom of navigation and overflight in accordance with the international law.
The new Philippine government headed by President Rodrigo Duterte is positive about resuming talks with China. "We welcome that and the door is open for that," he said, adding that the two countries are already in contact with each other through diplomatic channels.
The Philippines, which had launched the legal challenge in 2013, called for China to respect the tribunal's decision.
The US and Australia were among Manila's allies to call on China to respect the decision, saying it was legally binding, and increasing the international pressure on Beijing which says it has "historic rights" over the disputed region as it was the first to have discovered and named the area.
"We hope the US will play a positive role for peace and stability of the region. I also want to point out that the interest of the US is not the sole interest in the region.
"China and other countries in the region have our immediate interests. If any outsider wants to safeguard their interests they should not obstruct efforts by regional countries to protect their interests," he said.
"It serves the interests of all parties in the region," he said.
Asked whether Vietnam, Malaysia and Brunei will also opt for international arbitration following Tuesday's verdict, Lu said for a long time countries in the region have been striving to manage their differences and stay committed to growth.
"Under the current circumstances ASEAN (Association of South East Asian Nations) countries came up with that dual track approach which is that South China Sea disputes should be resolved by countries concerned through bilateral negotiations and consultations and China and ASEAN countries will work together for peace and stability of the south china sea. Peace and stability of the region is shared aspiration of China and other countries," he said.
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