China urged Japan to stop stoking tensions in the South China sea immediately and refrain from making groundless accusations against China on Friday.
"We again urge Japan to draw lessons from history and to be cautious with its words and actions on issues concerning military security," said Foreign Ministry spokesperson Hua Chunying at a routine press briefing.
Hua made the remarks when asked to comment on a forthcoming Japanese defense report.
The outline of Japan's defense white paper described China's land reclamation projects in the South China Sea as "high-handed".
Hua reiterated that China's construction activities on the Nansha islands and reefs fall within the scope of China's sovereignty, which are "lawful,reasonable and justified."
Japan is not a party to the disputes in the South China Sea, said Hua.
By defaming China and creating tensions in the area, Tokyo aims to create a pretext for adopting a new package of security bills which will significantly expand the scope of overseas operations by the country's self-defense forces.
The report also criticized China for its military spending, which it said is now 41 times higher than in fiscal 1989.
The Japanese government on Tuesday affirmed a new guideline to increase its surveillance and guard over the Diaoyu Islands in the East China Sea.
It will enhance its defense around Yonaguni Island, in Okinawa prefecture, through the deployment of coastal observation personnel,despite the risk of further worsening Japan's ties with China and increasing the possibility of a contingency in the surrounding area.
Hua said China was dissatisfied with the criticism of Japan's report and concerned about Japan's enhanced surveillance over the Diaoyu Islands.
China sticks to the path of peaceful development and pursues a national defense policy which is defensive in nature, she said, adding that China's development of its legitimate defense capacity is neither targeted at any country nor posing a threat to any country.
There is no need to worry about China's military build-up if one has no intention of infringing upon China, she said.
China adheres to the principle of balancing the need to build a strong defense with its economic development, said Hua.
Quoting the data of Japan's Ministry of Internal Affairs, Hua said Japan's military spending has kept a double-digit annual growth rate during the period of its rapid economic growth from 1961 to 1979, peaking at more than 20 percent.
Currently, Japan's per capita military expenditure is still five times the size of China's, she said, saying Japan is in no position to make irresponsible remarks on China's normal military development.
Hua also reaffirmed China's firm stance over the Diaoyu Islands issue.
China will continue to adopt necessary measures to safeguard its territorial sovereignty, she said, urging Japan to face up to history and reality, stop provocative words and actions that infringe upon China.
She also called on Japan to create conditions for properly resolving the Diaoyu Islands issue through dialogue.