Hawkins suffered a surprise 5-4 defeat to Chinease player Cao Yupeng.
‘The Hawk’ recovered from losing the first frame to take a 3-1 advantage with breaks of 50 and 51 but world number 65 Cao replied in fine fashion with a 102 to cut the arrears.
Hawkins, who only last month tested Ronnie O'Sullivan in a World Championship final losing effort, took a scrappy sixth frame 79-69 to re-open a two frame advantage but Cao rattled off the next three frames to progress to the next round.
While the fans were happy to see Cao take such a big scalp they were less pleased to see the darling of Chinese snooker Ding crash to a 5-1 defeat at the hands of Joe Perry.
Perry edged two close frames to open the match but Ding hit back with a run of 79. However, the Englishman then produced breaks of 71, 80 and 70 in successive frames which saw him claim the victory.
Former world number two Jimmy White also departed the China event after losing 5-3 by Robert Milkins.
‘The Whirlwind’ recovered from falling three frames behind to move to within one frame at 3-2 having won scrappy fourth and fifth frames.
Milkins took a tense sixth with a break of 39 before White recorded the highest break of the match in the seventh with a 72 but it was in vain as Milkins took the eighth to secure a place in the next round.
John Higgins was the first man to win through in the second session of the day, brushing Dechawat Poomjaeng aside 5-1.
Fellow former world champion Mark Williams, however, did not have it so easy and required a final-frame decider to see off the challenge of Jack Lisowski.
Round two results:
Xiao Guodong 5-4 Li Hang
Scott Donaldson 5-4 Jimmy Robertson
David Gilbert 5-2 Alan McManus
Joe Perry 5-1 Ding Junhui
Ali Carter 5-0 Lu Haotian
Mark King 5-4 Marco Fu
David Morris 5-2 Gerard Greene
Mark Williams 5-4 Jack Lisowski
Neil Robertson 5-2 Martin Gould
John Higgins 5-1 Dechawat Poomjaeng
Cao Yupeng 5 -4 Barry Hawkins
Matthew Stevens 5-3 Liang Wenbo
Anthony Hamilton 5 – 2 Stuart Bingham
Ben Woollaston 5-2 Joel Walker
Robert Milkins 5-3 Jimmy White
Peter Lines 5-2 Andrew Higginson
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