The China Coast Guard integrates the functions of marine surveillance, the existing coast guard which came under the police, fisheries law enforcement and Customs' anti-smuggling maritime police.
The divisions "that were not allowed to be equipped with weapons can be armed now", Yang Mian, professor of international relations at the Communication University of China, was quoted as saying by the Global Times newspaper.
"The new agency will also make our law enforcement more powerful."
Tensions have been growing over China's island disputes with Japan and other neighbours.
Chinese surveillance ships have frequently approached disputed islands in the East China Sea, which Japan controls and knows as the Senkakus but China claims as the Diaoyus, after Tokyo nationalised some of them last September.
The Philippines and Vietnam have accused Beijing of aggressively asserting its extensive claims in the South China Sea, although tensions have abated slightly with Hanoi in recent weeks.
Zhang said the new agency will deal with conflicts in the disputed waters according to Chinese law.
That "will... Show the international community that China has undisputable jurisdiction over the waters", he said.
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