The Magician, looking to win his eighth major ranking event this week, was in trouble when he trailed 4-2 against the world number 13 in Guangzhou.
But Murphy, who won the World Championship in 2005, hit back winning the next four frames to seal his place in the final.
He will next face either Luca Brecel from Belgium or China’s Li Hang on Tuesday for the £150,000 top prize and the China Championship trophy. Brecel recorded a stunning win over Ronnie O’Sullivan on Sunday.
Carter will rue missing a golden opportunity he had to take a crucial 5-4 lead when he messed up position when just needing the colours in the crucial ninth frame.
Murphy is one win away from winning the China Championship for the first time in his career. John Higgins won the inaugural event last year though this was an invitational event.