It was 1-1 at full time after China found a late equaliser through Tiantian Luo, who converted a penalty corner in the 47th minute.
India had scored through Navjot Kaur in the 25th minute of the game.
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India had to wait long for their second Women's Asia Cup title with the last one coming way back in 2004, when they had beaten Japan in New Delhi for the trophy.
South Korea secured third place with a 1-0 win over Japan earlier in the day.
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