1. The US sends out the GPS signals that give a position that is a few meters off the actual location. They want to make GPS not fully reliable to avoid its military use.
2. For its military, it sends out another signal, called the differential GPS. When this signal is combined with the satellite signal, it is able to get the exact location.
I do not know if the GPS is still operating in this manner today. If it is the case, it is possible for China to send out the strong signals to block out the differential GPS signals used by the US military in the South China Sea.