Fifteen-year-old Yan Bingtao and Zhou Yuelong, two years older, have beaten former world champion John Higgins and Stephen Maguire to win the World Cup.
The Scots had beaten China's A team in the quarter-finals but lost out 4-1 to the hosts' B side, who secured the £120,000 top prize in Wuxi.
China's Ding Junhui and Liang Wenbo won the event the last time it was played, in 2011, defeating Northern Ireland.
Zhou and Yan edged out Wales 4-3 in the semi-final before beating the Scots.
The Chinese teenagers have both won the world amateur title, Zhou had his rookie year on the professional tour last season, while Yan is now debuting on the circuit.
China established into a 3-0 lead in the final as Yan beat Higgins in the opening frame with a break of 100, Zhou saw off Maguire with runs of 44 and 51 then the home team added a doubles frame.
Former UK champion Maguire took frame four against Yan, but Zhou's 33 clearance in frame five against four-time world title holder Higgins gave China the title.
For the first time, China had been allowed to enter two teams into the competition and, having come through the group stage, their B team defeated Australia 4-2 in the quarter-finals.
They then edged out Welsh duo Mark Williams and Michael White 4-3.
Scotland beat China A 4-1 in the last eight then defeated India 4-3, with Maguire taking a dramatic final frame on the last pink after Aditya Mehta had missed a match-winning chance.