In a statement, spokesperson Hua Chunying said China has made solemn representations to Japan over the irresponsible white paper.
Japan has no right to make disparaging comments on China's legitimate activities near the Diaoyu Islands, Hua said, stressing that China's determination to safeguard territorial sovereignty and maritime rights and interests is "unshakable."
She said that China's navy and air force activities are in line with international law, domestic law as well as national defense needs.
China will not accept the "award" of the South China Sea arbitration initiated unilaterally by the Philippines, said Hua, adding that China will continue to strive for the peaceful settlement of disputes in the South China Sea through bilateral negotiations between countries directly concerned on the basis of respect for historical facts.
The spokesperson blamed Japan for fabricating excuses for its military expansion and stirring up enmity on regional security issues.
She urged Japan to learn from history, stick to a peaceful development path, act prudently in military matters and regain the trust of its neighbors instead of undermining regional stability.
TOKYO'S CALCULATIONS
The paper was the first of its kind issued after Japan's controversial new security laws came into effect earlier this year.
Wang Xingyu, a researcher with China's Renmin University, said that this year's white paper highlights the importance and legitimacy of the security bills, and urges Japan to maintain its advantage in defense technologies over its neighbors.
He said hyping up the so-called China threat is also part of Tokyo's agenda to justify the security laws that allow Japan to exercise collective self-defense rights.
Since Abe became prime minister in 2012, his cabinet has been dedicated to a shift in the country's exclusively defense-oriented policy and to a revision of the constitution.
To win popular support, the Japanese government has chosen to instigate a sense of crisis among its people by presenting China as a threat to regional peace and stability, he said.
Analysts believed that if Tokyo puts into practice what is in the paper, then both its relations with China and the security in the Asia-Pacific will take a big hit.
Wang said Japan, by stirring up China's maritime disputes with other countries in the South China Sea, is trying to team up with those claimant countries against China.
This would deepen distrust between the two Asian nations, and render their ties more contentious, he said.
Also in the paper, Japan stressed the necessity of enhancing the alliance between Tokyo and Washington, as well as its autonomy in the partnership, and entertained the feasibility of conducting multilateral security cooperation with the United States, Australia and India in the area that covers the Indian and the Pacific Oceans.
Wang said that by doing so, Japan wants to strengthen its military clout in the region, yet that would further complicate the security situation in the area.