Chief Cabinet Secretary Yoshihide Suga told reporters the decision was made after considering Abe's parliamentary activities and political schedule.
Although Suga cited Abe's schedule, an anti-Japanese theme of the parade could also be a reason. Abe has said he had hoped the event would not be anti-Japanese.
Japan invaded China before and during World War II, and Japan's treatment of China during that period still greatly impacts relations.
"The decision was made taking into consideration the Parliamentary proceedings and other situations," Suga said. But he added Abe told parliament recently that he hoped the theme of China's commemorative event "would not be anti-Japanese."
He said Japan continues to seek other opportunities for the countries leaders to meet, including on the sidelines of international conferences.
China says the parade is being held to mark the 70th anniversary of Japan's surrender and to demonstrate a commitment to peace. But it comes as some countries express unease at Beijing's confrontational stance regarding regional territorial disputes, making participation in the parade politically charged.
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