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Both players broke each other twice and forced a tiebreak in the first set.
Cibulkova failed to keep her serve games in the second set and Li used only 27 minutes to thrash her opponent 6-0 and emerge victorious.
This is the third time Li had reached the Australian Open final.
She had won the 2011 French Open, becoming Asia’s first grand slam singles champion.
Li made it to the finals at Melbourne Park in 2011 and 2013, losing to Kim Clijsters and Victoria Azarenka.