YONGXING ISLAND, Hainan - China on Tuesday established Sansha City on Yongxing Island in the southernmost province of Hainan.

A reporter covers the a ceremony marking the establishment of Sansha city after the signboards of the Sansha Municipal Government and the Sansha Municipal Committee of the Communist Party of China (CPC) were unveiled on Yongxing Island, Hainan province, July 24, 2012. [Photo/Xinhua]

A ceremony to mark the city's establishment began at 10:40 am on a square in front of the city government's main building.

The national flag was hoisted while the national anthem played after the signboards of the Sansha Municipal Government and the Sansha Municipal Committee of the Communist Party of China (CPC) were unveiled.

Sun Shaochi, vice minister of civil affairs, announced the State Council's approval of the establishment of the city at the ceremony.

Luo Baoming, Party chief of Hainan province, said in a keynote speech that Sansha was established to administer the Xisha, Zhongsha and Nansha islands and their surrounding waters in the South China Sea.

"The provincial government will be devoted to turning the city into an important base to safeguard China's sovereignty and serve marine resource development," he said.

He said the main task now will be to build up political power in Sansha to ensure efficient management.

The city government is located on Yongxing Island, a part of the Xisha Islands and the largest island in the area.