The Nansha ultra-crust layer-block is confined by ultra-crustal boundary faults of distinctive features, bordering the Kangtai-Shuangzi-Xiongnan extensional faulted zone on the north, the Baxian-Baram-Yoca-Cuyo nappe faulted zone on the south, the Wan'an-Natuna strike-slip tensional faulted zone on the west and the Mondoro-Panay strike-slip compressive faulted zone on the east. These faults take the top of the Nansha asthenosphere as their common detachmental surface. The Cenozoic dynamic process of the ultra-crust layer-block can be divided into four stages: K2-E21, during which the northern boundary faults extended, this ultra-crust layer-block was separated from the South China-Indosinian continental margin, the Palaeo-South China Sea subducted southwards and the Sibu accretion wedge was formed; E22-E31, during which the Southwest sub-sea basin extended and orogeny was active due to the collision of the Sibu accretion wedge; E32-N11, during which the central sub-sea basin extended, the Miri accretion wedge was formed and "A-type" subduction of the southern margin of the north Balawan occurred; N12-the present, during which large-scale thrusting and napping of the boundary faults in the south and mountain-building have taken place and the South China Sea stopped its extension.