That of course, is a picture perfect description of US foreign policy and so the statement by the President is effectively an indictment of Washington's own actions. 

Obama's remarks were made in the context of China's construction "activities" in the South China Sea where Beijing shares contested waters with the Philippines, Vietnam, Malaysia, Brunei and Taiwan. Essentially, China is building islands atop the Fiery Cross Reef in the Spratly archipelago, which some believe will be used for military purposes. Here's NY Times, summarizing: 

The construction on Fiery Cross Reef is part of a larger Chinese reclamation project involving scores of dredgers on at least five islands in the South China Sea. China is converting tiny reefs, once barely visible above water, into islands big enough to handle military hardware, personnel and recreation facilities for workers.

Satellite images of the reclamation efforts have been released in steady doses over the last few months, as smaller countries with claims to islands in the area have voiced concern about China's accelerated construction, and as the United States has stepped up its criticism...