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Sansha City is the home of an administrative base used to oversee China's interests in the South China Sea. China claimed theshoal near theSpratly islandsin 2012, despite its popularity with Philippine fishermen. China said it wouldreturn the area after an official visit from President Rodrigo Duterte last year. More recently, aPhilippine official said thatChinese President Xi Jinping had promised to halt construction on the outpost claimed byboth countries and Taiwan, but China later called the comments "baffling and regrettable." Trending: Secret Nuclear Bomb Test Videos Released by U.S. Government For First Time Meanwhile, images takenearlier this month and reported by Reuters this week showland clearing underway in the area. China could be preparing to build a harbor ormilitary installations, according to the images fromprivate satellite firm Planet Labs. The projects"are going to be vital to any future Chinese attempt to dominate the South China Sea,"Carl Thayer, a South China Sea expert at Australia's Defense Force Academy, told Reuters . "We can see they are committed to militarization, whatever the official rhetoric tells us, even if they are going to do it bit by bit." Roughly $5 million in trade passes through the South China Sea each year. The waterway'srich fishing and oil and gas deposits also have made it a source of global conflict, withBrunei, Malaysia, the Philippines, Taiwan and Vietnam all battling China overclaims to the waters. Beijing has already built at leastseven man-made islands in the area.