The second step of the plan is even more ambitious: building several large artificial islands in the sea to the south of Hong Kong. The new, 45-square-mile archipelago would fall outside Hong Kong’s boundaries, meaning it would require backing from China’s central government.

Island building on such a scale would likely face opposition over potential environmental damage. But China would have at least one advantage in such a project, said Francis Neoton Cheung of Doctoral Exchange. It could use the same reclamation technology that it is currently developing in the South China Sea to build military strongholds on what were once sunken reefs, he said.

问题：

文中的 it 是否指中国？请详细解释 develop 的意思。