World number 10 Walden, 33, will meet England's Judd Trump in Sunday's final at Beijing University over 19 frames.
It will be a second final in a week for Walden, who lost 10-6 to Mark Allen in the Players Championship on Sunday.
World number seven Trump whitewashed Scotland's Stephen Maguire 6-0 in the second semi-final to reach his second ranking final of the season.
Trump, 26, who was beaten 10-9 by Kyren Wilson in the final of the Shanghai Masters in September, won the opening frame with a 100 break and then raced to a 4-0 interval lead as Maguire, 35, struggled with his potting.
Trump then cleared with 31 in frame five to move to the brink of victory, before completing the victory with a break of 46 in the final frame.
Earlier, Walden edged a tight match against four-time world champion Higgins with a 131 break in the decider.
Walden is aiming for the fourth ranking title of his career and a fourth tournament victory in China, following his wins at the 2008 Shanghai Masters, the 2012 Wuxi Classic and the 2014 International Championship.
The China Open is the final ranking event before the World Championship, which begins in Sheffield on 16 April.

Moses, 25, starred as Nigeria clinched the 2013 Africa Cup of Nations, but his search for consistency on the international scene has been hampered by a series of niggling injuries.
His last Super Eagles appearance was in the 2-0 loss to France at the 2014 World Cup but he insists his commitment to Nigeria should not be questioned.
Unfortunately, I have not been able to play due to injuries but I have an unwavering commitment to Nigeria
"I'm proud of being a Nigerian international and am always committed to playing for my country," Moses told BBC Sport.
"It's the best feeling representing your country and I always want to perform and give 100% for the team.
"Unfortunately, I have not been able to play due to injuries but I have an unwavering commitment to Nigeria."
Moses' debut and last international appearance came under Stephen Keshi, who was fired after the country failed to qualify for the 2015 Nations Cup.
Keshi's successor, Sunday Oliseh, said Moses remains part of his plans despite pulling out of crucial friendlies against DR Congo and Cameroon last October.
Oliseh's comments were a timely boost for fit-again Moses who has played in West Ham's last five matches after recovering from a hamstring injury.
"There is a new manager and the team has been doing well but without me," said Moses, who misses the involvement.
"I'm prepared to give it my all and fight for a place on a regular basis, that's my aim.
"This is football, a competitive stage and I have to fight hard to get in but I don't mind doing that."
Former Crystal Palace and Wigan player Moses joined Chelsea in August 2012, but has spent the past two seasons on loan.
Moses, who also had loan spells at Liverpool in 2013-14 and Stoke last season, moved to West Ham on loan in September 2015 after signing a new four-year deal with his parent club.
At international level, he committed himself to Nigeria despite having represented England at junior levels, up to the Under-21 team.
Ricky Walden is through to the China Open final after a 6-5 semi-final victory over Scotland's John Higgins.
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West Ham winger Victor Moses has reiterated his commitment to Nigeria after he was accused by fans and local media in Nigeria of putting club before country.