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Markets

China completes artificial island in strategic Paracels

Published 21 August 2026

China has completed the first phase of a major land-reclamation project at Antelope Reef in the disputed Paracel Islands, transforming a largely submerged feature into a vast artificial island that regional analysts assess could become one of Beijing's most significant military installations in the South China Sea. Satellite imagery reviewed by multiple sources shows the new island spans approximately 1,490 acres, a scale that rivals China's largest existing outposts and marks a resumption of large-scale construction after a pause of nearly a decade. The artificial island, nearly 6 kilometers long, features a deep-water harbor fronted by a 680-meter wharf where a Chinese coast guard vessel was recently observed. Preliminary construction has also begun on buildings and a helipad in the southeastern section. Analysts note a conspicuously straight coastline exceeding 3 kilometers, which they assess is ideally suited for the development of an airstrip. Initial excavation work for a potential runway appears to have already commenced.

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