Authorities in Sansha City, which was established last week on Yongxing Island in China's southernmost province of Hainan, has decided to build 83 low-rent apartments for its residents, the People's Daily reported on July 30, 2012.

Children playing on Yongxing Island during the summer holiday. [Photo: People's Daily]

The island is currently home to 159 people and their wooden houses are vulnerable to harsh weather.

The new housing project is expected to be completed within the next two years.

The island's residents have enthusiastically welcomed the improvements and investment made by the authorities. "The authorities have invested in a rainwater treatment plant and a cistern, and purchased two 500-kw diesel generator sets," said island resident Guo Mingyi. "Now we have access to power and clean water, and there are supermarkets, banks, restaurants and cafes on the Beijing Road. Life is much better than before."

A new hospital is also under construction.

However, residents remain concerned about education provision on the island, with children needing to leave in order to attend schools and only able to return home on holidays.

China established Sansha City on July 24 to administer Xisha, Zhongsha and Nansha islands and their surrounding waters in the South China Sea.

In a written reply to questions from China's official Xinhua News Agency, the Chinese Foreign Ministry said that the establishment of the city is an affair within the country's sovereignty.

The ministry added that China would continue to seek appropriate solutions through bilateral negotiations and consultations with the parties directly involved in the South China Sea issue, based on respect for historical facts and international laws.