The giant Del Potro, fresh from winning the Japan Open, went into the semi-final at the Qizhong Tennis Center trailing 8-3 in head-to-heads, but rocked Nadal with a double break in the first set and kept up the pressure to win 6-2, 6-4.
Earlier, top seed Djokovic swept aside Jo-Wilfried Tsonga 6-2, 7-5 to earn the chance to defend his title.
But the 13-time Grand Slam champion was given the run-around by the sixth seed, who launched a sustained and blistering all-court attack from the start, achieving the rare feat of out-hitting his illustrious opponent.
Dominating from the baseline on both forehand and backhand sides, Del Potro raced into a 4-0 lead in the first set as Nadal desperately searched for a foothold.
A single break was enough in the second set for the inspired Argentine, who hit a total of 28 winners and 31 unforced errors, landing 80 percent of first serves.
In the first semi-final, Tsonga landed just 46 percent of first serves in an ultimately one-sided first set, and despite an improved showing in the second he cracked in the 12th game as Djokovic completed a straight-sets win.
"I think I raised my game today compared to last night's match," said Djokovic, who lost his cool midway through the second set over a couple of line calls before he found his focus again.
"Of course, I would wish to get even a better performance tomorrow for the most important match this week. But we'll see.
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