Davidson and team-mate Sébastien Buemi took a dominant win in the Number 8 TS040 Hybrid, their fourth of the season, to stretch their lead in the drivers’ World Championship to 42 points.
The victory gives Toyota a 29-point advantage in the manufacturers’ World Championship with two races remaining.
Davidsonsaid: “Today the whole team did a great job with the right strategy and solid pit stops; everyone kept calm and focused on getting the result.
“We showed we had the fastest car in Fuji and we’ve done that again here in Shanghai.
“We didn’t want to take too many risks, particularly in traffic so it was a relatively quiet race for me; Seb did all the spectacular work at the start.
“To get such a result at this stage of the season is huge for us and now we aim to continue like this in the final two races.”
The battle for the World Championship now moves into the final stages with just two races remaining; in Bahrain on November 15 and Sao Paulo two weeks later.
Toyota team president Yoshiaki Kinoshita added: “This is the result we have all worked hard for, so thank you to everyone in the team.”