Sindhu beat Jiayuan 21-13 19-21 21-13 in a match that lasted 47 minutes.
Sindhu will meet Hong Kong's Cheung Ngan Yi in the quarterfinals tomorrow.
Making the pre-quarters of the men's event were R M V Gurusaidutt, Sameer Verma and K Srikanth.
Verma defeated Malaysia's Wei Feng Chong 21-15 16-21 21-19 in 55 minutes while Gurusaidutt beat Giap Chin Goh, also from the host country, 21-8 21-9 in just 26 minutes. K Srikanth got the better of Suppanyu Avihingsanon of Thailand 21-9 21-19 in 36 minutes.
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Tanvi Lal too lost, to Japan's Ito Kana 21-8 21-14.
H S Prannoy, who got a walkover in the first round, lost his second round match to Malaysia's Zainuddin Iskandar Zulkarnain 15-21 21-14 21-15.
In mixed doubles, Sanjeeth S and Jagadish Yadav lost to Indonesian duo of Hardi Hardianto and Agripinna Prima Rahmanto Putra 21-16 21-17.