In the match, held at the Hohhot Sports Center, Maral Torkaman gave the lead to Iran from the penalty spot just two minutes into the match.
But Chinese Taipei equalized the match in the 18th minute through a well-worked kick-in routine, which saw Chen set up Liu Wen Ling to lash in her tournament-leading fifth goal from range.
After the match finished 1-1 at the end of regulation time, Fereshteh Khosravi and Farzaneh Tavasoli netted deep in extra time to make it 13 wins in 14 matches overall.
Iran will face Japan in the semi-finals on Thursday.