However the news has disappointed some console owners who believe a subscription would enable them to access more content.
China's Xbox Gold service is very limited compared with other markets in order to comply with the country's strict censorship laws.
The free trial was supposed to have ended this week.
China is the only country in which access to a regionally locked-down version of the online Gold service is free.
Regular membership in most countries includes online multiplayer functions, free online games and discounts on others.
Online games still require government approval before they can launch in China, which means that many are unavailable.
Sharing the news on its official Weibo account, a popular Chinese micro-blogging platform, Microsoft said it would continue to be free "for reasons you understand".
"To say that Chinese Xbox fans were not amused might be an understatement," reports the Tech in Asia website.
"Fans are incensed at what many see as a pattern of constant delays."
The Xbox One gaming console went on sale in China in 2014, after a 14-year ban on consoles was lifted.
Microsoft has been contacted by the BBC for comment.
Source: BBC
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