Cantharellus hygrophorus is described and illustrated from tropical Yunnan, China. It is characterized by its medium to large, fleshy fruitbodies, the deep orange-red color of pileus and part of the stipe, the yellow-orange hymenophore composed of well-developed gill folds, a pileipellis of suberect hyphal extremities and absence of clamps. These characters place it in Cantharellus subg. Afrocantharellus sect. Cutirellus as a look-alike of the tropical African C. splendens. Both morphological features as well as a phylogenetic analysis of nLSU sequences argue strongly against the recognition of Afrocantharellus as a separate genus, which is here considered a later synonym of Cantharellus.