The United States yesterday criticised China's establishment of a new military garrison in the South China Sea as it called on all sides to lower tensions in the hotly contested waters.

China announced last week that it was establishing the tiny city of Sansha and a garrison on an island in the disputed Paracel chain, infuriating Vietnam and the Philippines, which have accused Beijing of intimidation.

China says it controls much of the South China Sea, but Brunei, Malaysia, Taiwan, the Philippines and Vietnam all claim portions.

Vietnam and the Philippines have accused China of stepping up harassment at sea.