China is now just one victory away from a spot in the Rio de Janeiro Games while Iran, who will play in the third-place game, will take part in one of the three FIBA Olympic Qualifying Tournaments (OQTs) next year.
The Chinese will meet the winner of the Philippines-Japan semis match in the gold medal match.
Iran was led by the 18 points of Samad Nikkhah Bahrami.
Hamed Haddadi also played well, finishing with 16 points and 11 boards, but committed 8 turnovers.
Former Milwaukee Buck Yi Jianlian led the winning side with 13 points and 8 boards, while Peng Zhou and Yanyuhang Ding contributed 10 and 12 points, respectively.