Chinese Taipei reached the 2014 FIBA Asia Cup final after beating China 84-73 in the semi-final.
It was China's third straight loss to Chinese Taipei in one year since the Asian championship, reports Xinhua.
China Friday trailed by four points entering the second quarter, in which Kelanbaike Makan hit 11 points including two 3-pointers, helping the host team even the score 34-all after the first half.
Makan was a joint top scorer of the game with 22 points.
China was four points behind going into the fourth quarter in which the gap was once narrowed to two points at 62-60.
Then Chinese Taipei pulled away with a 13-0 run.
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Chinese Taipei captain Liu Cheng scored 22 points and Quuincy Davis added 10 points and 9 rebounds.
"We missed so many chances," said China coach Wang Huaiyu. "The loss is part of a learning curve."