The 20-year-old clocked three minutes 41.54 seconds to beat the previous record held by countryman Zou Liankang by almost eight seconds on Sunday, reports Xinhua.
Zou took silver by clocking 3:42.58 and Ukraine's Serhii Palamarchuk claimed bronze in 3:43.69.
Liu's limb impairment is the result of an accident when he was eight.
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