Qiao Damo, founder of the little-known China International Peace Studies Centre, which runs the accolade, told AFP that Mugabe had been recognised for his "outstanding contributions" to world peace.
The nonagerian African leader beat nine other finalists, including Bill Gates, UN Secretary General Ban Ki-moon, and South Korean President Park Geun-Hye, he added.
"If he hadn't come to power in 1980, if he hadn't played a role, how much talent would have been wasted!" said Qiao.
Mugabe -- who has had a close relationship with Beijing for decades -- joins an eclectic roster of past winners, which includes Vladimir Putin and Fidel Castro as well as more mainstream figures such as Kofi Annan.
In a statement announcing the award in September, the committee praised Mugabe for being "committed to building the country's political and economic order, for the benefit of the Zimbabwean people", and for his "strong support of Pan-Africanism and African independence".
Human rights groups and opposition politicians accuse Mugabe of overseeing the crippling of his country's economy and brutal crackdowns, but the prize organisers dismissed their concerns.
"Unrest is quite normal," he said. "When America was first founded, it was also very chaotic, and Zimbabwe was only founded 30 years ago."
Writing on Zimbabwe's Bulawayo24 news site, Gorden Moyo, secretary-general of the People's Democratic Party, a Zimbabwean opposition party led by former finance minister Tendai Biti, described the award as "insanity".
"Mugabe as we know him and as the people of Zimbabwe have experienced his reign is a war-monger, a bellicosist and a sadist who delights in the misery of the people," he said.
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