Chen Peng, 37, was taken to Phi Phi hospital after he was hit by a speedboat propeller blade, which cut the main arteries in both his thighs. He was transferred to the Phuket OrBorJor hospital in Phuket Town, but died there mid-afternoon.
Pol Lt Col Charun Nabpetch, who is based at the Phi Phi island police station, said the Mr Chen was on board a speedboat, named Jandara 1, along with 10 other passengers.
The boat anchored in Phi Phi Lei bay, and six passengers jumped into the water. Mr Chen and four others stayed on board the boat.
The waves got stronger and the speedboat was parked close to the rocks, so the speedboat driver told the passengers not to jump in the water and he would move the boat.
However, likely due to miscommunication, Mr Chen and his male friend jumped off the side of the boat, and Mr Chen was swept into the propeller.
He suffered severe leg injuries and was taken to Phi Phi hospital, then later transferred to the Phuket OrBorJor hospital, where he was declared dead at around 3pm.
Mr Chen is the second Chinese tourist to die in the Phuket area this week. On Tuesday, Chinese tourist Li Ran, 30, drowned while on a trip to Racha Yai island.