Duterte made the comments on the eve of him hosting a two-day Association of Southeast Asian Nations (ASEAN) summit, and he confirmed he would not use the event to pressure China on its expansionism in the strategically vital waters.
"It cannot be an issue anymore. It's already there. What would be the purpose also of discussing it if you cannot do anything," Duterte told reporters.
China has been turning reefs and shoals in areas of the sea claimed by the Philippines and other nations into artificial islands, and installing military facilities there.
China's reclamation has also rattled other claimants, which include ASEAN members Vietnam, Malaysia and Brunei.
Duterte's predecessor, Benigno Aquino, had challenged China by asking a UN-backed tribunal to outlaw Beijing's sweeping claims to the sea and its reclamation work.
The tribunal last year ruled largely in the Philippines' favour.
However Duterte, who came to office shortly before the ruling was issued, adopted a pragmatic approach to dealing with China in a bid to win billions of dollars worth of trade and aid.
"Who can stop that? Us? It's only America. But how come they allowed that to happen," Duterte said, adding the United States could have used its Navy to stop the reclamation work years ago.
Duterte said he would not raise the ruling during this week's ASEAN summit.
"I will skip the arbitral ruling. It is not an issue here in the ASEAN," he said.
"It's only between China and the Philippines so I will skip that."
Philippine diplomats have said a "framework" code of conduct might be completed by June.
Duterte expressed optimism a code of conduct would ensure freedom of navigation and overflight in the waters.
"The code of conduct at sea is another story. It must be taken up," Duterte said referring to the ASEAN summit.
Analysts have cautioned that China has been delaying negotiations on a code since it was proposed 15 years ago, and used that time to build its artificial islands and take control of other contested features.
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