Britain's Lee Westwood, who ended Woods's reign as world No.1 this week, carded a two-under-par 70 to remain one off the lead.
In a frustrating round, Woods lipped the pin five times, twice with short putts, and canceled out five birdies with a corresponding number of bogeys to finish with par 72.
"I struggled a little bit today," the American told reporters. "The pins were tough. I didn't hit very good, so the score could have been worse, but also it could have been a lot better." Westwood produced three birdies during another solid performance but the 37-year-old missed on a likely fourth when he ignored his caddie's advice over the choice of club on his second shot out of the rough on the 18th.
"Billy (Foster) said it would be best to lay up and go with a full shot because of where the flag was cut," Westwood said.
"I obviously knew better as a player and hit a five-wood and left it in just about the worst place I could. But today, as per usual, I should have listened to my caddie." The 37-year-old, on eight-under-par is in a strong position to defend his number one world ranking from Woods, Phil Mickelson and German Martin Kaymer who could all take over at the top with a victory in Shanghai.
Defending title holder Mickelson is also tied ninth on four under par after scoring a second-round 71.
