Kerr fired home from a tight angle in the 58th minute, her fourth goal of the tournament proving the difference in a gruelling semi-final in front of 35,170 fans on a balmy night.
The Matildas will face title favourites Japan or South Korea in Saturday’s final in Sydney.
The match started at breakneck speed with Arsenal forward Caitlin Foord scoring in the 17th minute.
China levelled shortly after with Zhang Linyan converting a penalty.
But the reigning champions were unable to contain hometown hero Kerr, who ensured Australia remained on track for a second continental title to sit alongside their 2010 triumph.
“Her presence, her aura, in the squad is immense,” Australia head coach Joe Montemurro said of 32-year-old Kerr.
“She believes in the group and loves playing for her country.”
China’s bid for a record-extending 10th crown ended in heartbreak and they rued missed opportunities in front of goal after having 14 shots to eight.
“I’m pretty devastated for them because I felt we played a good game,” China head coach Ante Milicic said.
“All I asked was for them to give 100 percent which they did. They carried out the game plan.
“But in football, the result matters. We didn’t get it tonight.” (AFP)
Edited by Edmond Fong
