But 2002 World Cup semi-finalists South Korea plus Iran and Kuwait all clinched their places in next year's final round of qualifiers.
Striker Ali Daei became the first player to score 100 international goals as Iran demolished Laos 7-0 to wrap up Group One.
Only the eight group winners -- Iran, Uzbekistan, Japan, Kuwait, North Korea, Bahrain, South Korea and Saudi Arabia -- go through to the next stage.
The teams will be divided into two groups of four in a draw on December 9. The top two teams from each of those group will then qualify directly for the 2006 World Cup in Germany.
The two third-placed teams will face each other in a two-leg playoff and the winner of that will play a team from the CONCACAF region, again over two legs, for a place in the finals.
Kuwait crushed Malaysia 6-1 at home to advance at China's expense in Group Four on goals scored. China's exit will almost certainly spell the end of Dutch coach Arie Haan's reign.
Kuwait and China finished with 15 points from six matches and shared the same goal difference and head-to-head record but the Gulf side secured top spot with 15 goals to China's 14.
Shao Jiayi and Li Jinyu each scored twice in Guangzhou but defender Zheng Zhi's 71st-minute penalty miss proved costly for China, who made their World Cup finals debut in 2002.
DEVASTATING SETBACK
"I feel very sad for the players," said a dejected-looking Haan, whose contract is set to be terminated after a devastating setback for China, who will host the 2008 Olympics.
"It's better not to talk. You just look into their eyes and you know enough. I feel empty inside," he said.
Several of the Chinese players were in tears as they boarded
Bashar Abdullah and substitute Faraj Laheeb scored two each as Kuwait took control of the group with five second-half goals.
South Korea had been held to a shock 0-0 draw by Maldives in March -- a result that cost coach Humberto Coelho his job.
The Indian Ocean islanders made life difficult for South Korea again but midfielder Kim Do-heon broke the deadlock with a brilliant 25-metre strike after 65 minutes in Seoul.
Forward Lee Dong-gook assured the Koreans of top spot in Group Seven when he snatched a second goal in the 79th minute.
South Korea, who have qualified for every World Cup since 1986, finished with an unassailable 14 points with Lebanon on 11 after being held 0-0 at home by Vietnam.
TALISMAN DAEI
Meanwhile, talismanic Iran striker Daei struck four times to take his tally to 102 international goals as Iran overwhelmed Laos to finish top of Group One with 15 points.
Jordan, who had a mathematical chance of catching Iran, were beaten 2-0 away by Qatar.
Among the five teams who secured qualification last month, Japan beat Singapore 1-0 to make it six wins out of six but the Asian champions failed to impress in Saitama.
Striker Keiji Tamada scored from close range in the 13th minute but the Japanese lacked cohesion against a team they struggled to beat 2-1 away in March.
Unbeaten Uzbekistan beat Taiwan 6-1 at home to finish five points clear at the top of Group Two with five wins and a draw.
Captain Mirdjalal Kasimov, known as the David Beckham of Uzbekistan, scored a superb hat-trick in Tashkent to leave Taiwan without a point in six matches.
Bahrain overpowered Tajikistan 4-0 at home in Group Six and Group Five winners North Korea, who have done little in world football since their shock quarter-final appearance at the 1966 World Cup in England, lost 1-0 in the United Arab Emirates.