Sindhu sank to her knees at the end of an exhausting 14-21 21-16 21-18 victory over the Taiwanese in 62 enthralling minutes in the southern Chinese city of Guangzhou.
The 23-year-old, a silver medallist at the Rio Olympics in 2016, faces Zhang Beiwen of the United States on Friday looking to make it three wins out of three in Group A of the £1.2m end-of-year showpiece.
"Each point was hard fought," said a relieved Sindhu, ranked sixth in the world.
"There were long rallies with good strokes. She was very deceptive and I had to be ready for her strokes.
"Even though I was trailing in the third game I didn't lose hope and I kept fighting."
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