The Boomers endured a few anxious moments before defeating host nation China 67-55 at the third FIBA Diamond Ball in Nanjing.
Australia held a 15-point lead late in the third quarter on the back of some relentless defence which forced China into 23 turnovers before the margin was reduced to just six with minutes to play.
But the Boomers held their nerve, sealing the result when Chris Anstey hit a three-pointer and then Mark Worthington scored on a breakaway dunk.
Anstey was Australia's top-scorer with 11 points, while David Andersen had 10 points and star centre Andrew Bogut scored nine points and eight rebounds.
Most pleasing for coach Brian Goorjian, however, was in defence where the Boomers held the experienced NBA trio of Yao Ming, Yi Jianlian and Wang Zhizhi to 18 points and 14 rebounds.
"We were stuck in the mud offensively and we knew that would be the case," a pleased Goorjian said ahead of the Olympic Games.
"The big picture for us is we've got to get better and we've got to get better through these games."
"I was pleased, really pleased, with the defence we played and the contribution our three big guys made on the glass."
The Boomers led by 10 points at half-time before the tempo lifted in the third quarter as both teams threw everything at each other.
They stretched the margin to 15 points late in the period before China scored the final five points to leave the game in the balance.
China scored first in the final term and when tempers progressed to a scuffle and Matt Nielsen received a technical foul, the hosts connected on both foul shots to reduce the margin to six points.
But Anstey stepped up with another three-pointer before Worthington sealed victory.
Australia plays Angola on Thursday evening with a victory almost certainly sealing a playoff spot against reigning Olympic champions Argentina.
Meanwhile, the absence of superstar Lauren Jackson did little to halt the Opals' momentum as they swept their two-game international series over Brazil 85-62 in Sydney on Wednesday night.
Suzy Batkovic top-scored for the Opals with 17 points, while Belinda Snell added 13 points to be named the series' most valuable player.
Martins Da Costa led the Brazilians with 16 points while Evangelista Dantas contributed 12.
Jackson was forced to pull out of the game with soreness in her right ankle but is expected to be fit for the FIBA Diamond Ball Tournament in Haining, China starting on August 3.
She underwent a precautionary MRI for what was later diagnosed as an anterior impingement and will follow a course of rest and anti-inflammatories.
Boomers 67 (Chris Anstey 11, David Andersen 10, Andrew Bogut 9)
China 55 (Yao Ming 14, Li Nan 11, Shipeng Wang 8)