The win over China helped the Indian colts, who had earlier defeated Japan 2-1 and hosts Malaysia 5-4, register their third consecutive win in the tournament and finish on top of Pool A.
India will now meet Oman, the bottom-placed team of Pool B in the quarterfinals on Thursday.
For India, Manpreet Singh Jr (52nd, 67th minutes) fired two goals through penalty corner conversions while Harmanpreet Singh (16th) and Ajit Pandey (37th) scored one goal apiece.
India started the match on an attacking note pressing hard on the weak Chines defense, but could only broke the deadlock in the 16th minute through a penalty corner conversion by Harmanpreet.
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The first half came to an end with India leading 1-0.
India doubled their lead in the second minute of the second half through Ajit.
But China pulled one back soon after in the 43rd minute through a penalty corner converted by Guo.
India, thereafter, increased their pace in the game to convert two goals in quick succession through Manpreet Jr to ensure the win.