World No. 12 Sindhu surpassed Chen 21-13 18-21 21-14 in a quarterfinal match that lasted 54 minutes to emerge as the lone Indian survivor after men's singles players B Sai Praneeth and H S Prannoy bowed out.
The two-time World Championship bronze-medallist, Sindhu will next square off against the winner of the match between Japan's Sayaka Sato and Japan's Akane Yamaguchi.
Praneeth, seeded 15th, fought for an hour and 10 minutes before losing 16-21 23-21 13-21 to Goh Soon Huat, while seventh seed Prannoy squandered a first-game advantage to go down narrowly 21-18 19-21 11-21 in 59 minutes.
In women's singles, Sindhu stamped her authority early in the match as she zoomed to a 8-1 lead. However, Chen narrowed it down to 7-8 but the Indian was alert enough to soon distance herself from the Chinese, eventually pocketing the first game with a four-point burst.
In the decider, fifth seed Sindhu changed gears and didn't allow Chen to come near her as she lead 7-3 initially and kept moving ahead to eventually close the issue without much ado.