The fifth seeded Indian, who had a 3-1 head-to-head record against his opponent, staved off a challenge from the 10th seeded Chinese 9-21 23-21 21-15 in a match that lasted an hour and 12 minutes.
World No. 23 Prannoy, who had trounced Scotland's Kieran Merrrilees 21-17 21-19 yesterday, will now meet the winner of the match between China's Shi Yuqi, who reached the finals at All England last week, and Denmark's Anders Antonsen.
After being completely outplayed in the opening game, Prannoy fought back from 15-18 down to clinch the second game. In the decider, the Indian zoomed to a 8-3 lead early on and kept his nose ahead to win in comfortably.
Pranaav Jerry Chopra and N Sikki Reddy, who clinched their maiden Grand Prix Gold title at Syed Modi Internationals in January, had reached the third round of the mixed doubles event after their opponents Sweden's Nico Ruponen and Amanda Hogstrom gave them a walkover.
In the opening round, Rio Olympians Manu Attri and B Sumeeth Reddy suffered a 15-21 19-21 loss to top seeded Chinese combo of Chai Biao and Hong Wei last night.
It was also curtains for Sri Krishna Priya Kudaravalli in women's singles after she lost 18-21 8-21 to seventh seeded Indonesian Fitriani Fitriani.
Women's doubles pair of Sanjana Santosh and Arathi Sara Sunil also crashed out after suffering a 15-21 15-21 loss to German combo of Johanna Goliszewski and Lara Kaepplein.
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