"The Korean Peninsula and Northeast Asia are shrouded in instability and uncertainty," the Chinese ministry said in the defense white paper, South Korea’s Yonhap news agency reported on Tuesday.
Along with territorial disputes in the South China Sea and regional terrorism, the paper said, the Korean Peninsula issue poses "a negative impact on the security and stability along China's periphery."
The warning came amid repeated claims by North Korea that it has advanced its nuclear and ballistic missile capabilities.
The Chinese Defense Ministry also criticized Japan for trying to allow its military to fight overseas.
"Japan is sparing no effort to dodge the post-war mechanism, overhauling its military and security policies. Such development has caused grave concerns among other countries in the region," the paper said, Yonhap reported.