My comment:
(a) The entire report does not mention South China Sea or Taiwan.
(b) "老祖宗留下来的领土，一寸也不能丢" is translated in Xinhua as "Any inch of territory passed down from ancestors can not be lost while we want nothing from others." I wonder this sentence of Xi's includes South China Sea, as "territory" usually means land, nor does 领土.
(c) VOA: "美国国防部长马蒂斯这个月早些时候在新加坡举行的香格里拉对话上表示，中国在南中国海一些有争议岛礁上降落军机和部署导弹系统，迫使美国重新考虑与北京的 '合作立场，'并警告中国未来会冒 '更大后果' 的风险。"
"I would tell you that up until -- if you'd asked me two months ago, I'd have said we are still attempting to maintain a cooperative stance with the PRC, with China. We (were ?) inviting them to the RIMPAC and world's largest naval exercise in order to try to keep the open lines of military communication between us and transparency.
"But when you look at what President Xi said in the Rose Garden of the White House in 2015, that they would not militarize the Spratlys, and then we watched what happened four weeks ago, it was time to say there's a consequence to this. And the world's largest naval exercise will not have the Chinese Navy participating.
"But that's a relatively small consequence, and I believe there are much larger consequences in the future when nations lose the report of their neighbors, when they believe that piling mountainous debts on their neighbors and somehow removing the freedom of political action is the way to engage with them.
* My guess is the clause "nations lose the report of their neighbors" in the third paragraph might actually has "support" rather than "report."