The 33-year-old, who won in Florida last week, has withdrawn to be with his wife who is due to give birth to their second child.
In a statement, Donald said: "It's important for my wife and it's important for me to make sure that I'm around to support her."
Donald is trying to become the first player to win the money list on both sides of the Atlantic and the US dollar 7 million event in China was a major part of his plans.
However, he admitted family came first.
"It's no coincidence that the birth of our first daughter inspired me to some really great golf," he added.
"Family does put a lot of things into perspective; my job is very important but the family out-trumps everything,"