HONOLULU — China has claimed a key new territory in its efforts to expand its reach in the Pacific region this week, building an artificial island inside Pearl Harbor, Hawaii.

The presence of Chinese dredging crews on a shoal in the middle of the U.S. Navy’s Pacific Fleet headquarters was first reported to Naval Intelligence in early February. But the information was not shared with the Chief of Naval Operations, the Secretary of Defense, or the State Department because the Chief of Naval Intelligence was not told about it because he doesn’t actually have a security clearance.

Adm. Harry B. Harris, Commander in Chief, Pacific, says the Navy is “cautiously optimistic” that China will stand down.