Edmund was fresh off an impressive victory over Bernard Tomic in the first round.
The British number two made a terrible start, losing the first set 6-0.
However, he hit back emphatically, winning the second set 6-1 to suggest that his sixth-seed ranking was justified.
Edmund's losing run continues in Cologne
Unfortunately for Edmund, he could not maintain his momentum, and he lost the final set 6-4.
Results from the Chengdu Open Men's Singles matches on Wednesday
- Jared Donaldson (U.S.) beat 6-Kyle Edmund (Britain) 6-0 1-6 6-4
- Denis Istomin (Uzbekistan) beat 3-Karen Khachanov (Russia) 6-3 6-2
- Dusan Lajovic (Serbia) beat 2-Albert Ramos (Spain) 6-2 6-3
- 5-Yuichi Sugita (Japan) beat Thiago Monteiro (Brazil) 6-4 6-1
- Peter Gojowczyk (Germany) beat 8-Leonardo Mayer (Argentina) 6-2 6-2
US Open men
Djokovic bounces back from losing first set to see off Edmund
ATP New York
Britain's Edmund wins New York Open title in straight sets