The boy is said to have tried to sit on the metal bars securing the open window of the Ferris wheel cabin when he slipped out.
Luckily he was caught by his neck and avoided plunging some 131 feet to his death.
The heart-in-mouth moment happened on September 24 as the boy and his mum, known as Liu, visited the amusement park.
But rather than pay the 30 RMB (£3.35) on a ticket, she let her son ride alone after he repeatedly nagged her about it, with staff members reportedly allowing the oversight.
As the boy’s car, number 18, reached the peak of the city landmark Ferris wheel, screams were heard from the ground as witnesses spotted the boy climbing out the window feet first.
The shouting and screaming increased in intensity as the boy’s small body appeared to slip out the window between the metal security bars.
Footage shows the boy desperately kicking his legs as he hangs by his neck, with no one in his car to help him back inside.
When it became clear that the boy could not be helped, operators let the Ferris wheel continue to turn and waited as car 18 made its way to the ground agonisingly slowly.
Staff members and other witnesses immediately rushed to the boy and freed him from the bars when he came within reach, the video shows.
He and his mum were taken to the city’s First People’s Hospital, with the child fortunately suffering no serious injuries besides a bruised neck.
City officials have reportedly shut down the Ferris wheel operations as investigations into the ordeal continue.
A witness was quoted as saying: "Children need to be accompanied by adults when riding the Ferris wheel. I don’t know how the mother convinced the staff members to let her son ride along in a car."
Yuhuan Park’s amusement facilities were opened to the public in November 2013, the 137-foot Ferris wheel instantly becoming its main attraction and Taizhou’s new landmark.
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