Alessia Russo gave the European champions the perfect start with a goal in the fourth minute and Lauren Hemp and James added two more to give England a comfortable lead at the break at Hindmarsh Stadium.
Without the injured Keira Walsh as the holding midfielder, England shifted to a 3-5-2 formation and caused havoc for China with balls into the box from the flanks.
"The team showed that they're really adaptable ... that we can change shape very easily, that's what we showed tonight."
It was a record World Cup defeat for Asian champions and 1995 semi-finalists China, who exit in the group stage for the first time in eight appearances at the global showpiece.
"It's very unfortunate that we had this terrible loss," said China coach Shui Qingxia.
Persons:
Lauren James, Alex Greenwood, Lauren Hemp, Alessia Russo, Hannah Mckay, James, Chloe Kelly, Rachel Daly, Keira Walsh, Sarina Wiegman, Shui, Russo, Millie Bright, Wang, Lucy Bronze, Jess Carter's, Kelly, Zhu Yu, wingback Daly, Nick Mulvenney, Christian Radnedge
Organizations:
Soccer Football, FIFA, England, Hindmarsh, Alessia Russo REUTERS, Reuters Connect, Nigeria, China, Denmark, Haiti, Manchester City, Thomson
Locations:
New Zealand, China, Adelaide, Australia, Brisbane, England