The Indian beat the local player 6-3 6-1 in the third round of the qualifiers.
Sanam, who had got byes in the first two rounds, will next face another Chinese, Zhizhen Zhang in the final round.
A win in the final round will take him to the main draw.
Two other Indians Davis Cuppers -- Yuki Bhambri and Vishnu Vardhan -- are already in the main draw after getting wild cards from All India Tennis Association.
Meanwhile, N Sriram Balaji has also entered the main draw since one country has not utilised its quota. Therefore, if Sanam also qualifies, India will have four players competing in the main draw.
Prerna Bhambri is India's lone entry in the women's singles category.
The winners of this tournament will get wild card entry into the 2013 Australian Open main draw.
