The scores were level 3-3 after the first two periods and it was still a stalemate after 10 minutes in the final period.
But New Zealand left its best for last with a sustained four-pronged attack on the Chinese goal and excited the crowd of 400 spectators.
New Zealand over-powered China in the last 10 minutes and the result pleased head coach Andreas Kaisser.
"We continued to play the fourth line and it gave us the strength and power to score goals," he said. "Our fitness told in the end when everything came together."
The two attacking players who excelled in the final period were Georg Huber and Chris Eaden who both scored two goals to rub home the Ice Blacks' dominance.
They were backed by Paris Heyd and Joshua Hay. But the best player in the Ice Blacks team was goal tender Zak Nothling who made 21 saves and only let in three goals.
In the first period he made eight saves and let in two goals, in the second spell he saved eight goals and let in one and in the final period he made another five saves without conceding a goal.
It was his skilled defending in the first 10 minutes of the final period that broke the heart of the Chinese team and paved the way for the final onslaught.
The Chinese goal tender Liu Wei made 37 saves and conceded eight goals. In the final period he made 13 saves and conceded five goals.
China led 2-1 after the first of the three periods but the margin would have been greater if Nothling had not been in such fine touch.
China pummelled the New Zealand goal from the start and could have had early goals if Nothling had not been on his game.
China had the ability to break out down the centre and up the flanks to create scoring opportunities.
The most impressive attacker for China in the first period was Wang Ziye who was dangerous when attacking up the centre with his skilled stick work and tricky maneuvres.
He created several scoring opportunities.
Chen Zhipeng in the centres was the workhorse of the Chinese team and created opportunities for his attackers and also defended well when New Zealand was on attack.
China had the edge in the first 10 minutes but New Zealand came back stronger in the last 10 minutes with Braden Lee dangerous moving up the centre.
Paris Heyd was a strong defender and veteran Brett Speirs showing his class with deft stick work.
China scored first with just 3min 10sec left in the spell when Chen Ling netted.
New Zealand struck back immediately when Joshua Hay found the net with an assist from Richard Idoine.
China hit the front with just over a minute left when Wang Chongwei goaled.
New Zealand hit back immediately when Simon Glass scored in the first minute of the second period. Speirs was the assist.
This early goal instilled confidence into the Ice Blacks and they unleashed their attacking flair throughout the period to score two goals and had the edge over China.
The third New Zealand goal was scored by Jordan Challis with an assist from Chris Eaden to take New Zealand into the lead 3-2.
Eaden was everywhere and was the best player in the New Zealand team. He was able to penetrate from the deep and set up scoring opportunities.
The other player to impress for the Ice Blacks was Andrew Cox with his attacks up the left flank.
He also enjoyed the biffo and flattened a Chinese player into the side wall.
New Zealand's score could have been greater if it had not been for the superb play of the Chinese goal tender Liu Zhiwei.
China equalised late in the spell when Wang Chongwei scored his second goal. It was 3-3 after two periods.
The Chinese team was delayed in Auckland for two days and only arrived in Dunedin late yesterday afternoon.
China will play in division 2, group B, at next year's world championships and New Zealand in division 2, group A after winning the silver medal behind Australia in this year's world championships in Melbourne.
• New Zealand 8 (Richard Idoine, Simon Glass, Jordan Challis, Chris Eaden 2, Georg Huber 2, Damien Watson), China 3 (Chen Ling, Wang Chongwei 2).
