Answer by taking a quote from the following article:

James Hudson Taylor (Chinese: Dai De Sheng ; 21 May 1832 - 3 June 1905) was a British Protestant Christian missionary to China and founder of the China Inland Mission (CIM, now OMF International). Taylor spent 51 years in China. The society that he began was responsible for bringing over 800 missionaries to the country who began 125 schools and directly resulted in 18,000 Christian conversions, as well as the establishment of more than 300 stations of work with more than 500 local helpers in all eighteen provinces.

Due to health issues, Taylor remained in Switzerland, semi-retired with his wife. In 1900, Dixon Edward Hoste was appointed the Acting General Director of the CIM, and in 1902, Taylor formally resigned. His wife, Jennie, died of cancer in 1904 in Les Chevalleyres, Switzerland, and in 1905, Taylor returned to China for the eleventh and final time. There he visited Yangzhou and Zhenjiang and other cities, before dying suddenly while reading at home in Changsha. He was buried next to his first wife, Maria, in Zhenjiang, in the small English Cemetery near the Yangtze River.  The small cemetery was built over with industrial buildings in the 1960s and the grave markers were destroyed. However, the marker for Hudson Taylor was stored away in a local museum for years. His great-grandson, James Hudson Taylor III, found the marker and was able to help a local Chinese church re-erect it within their building in 1999.  His re-erected tombstone reads:  In 2013 the land for the cemetery was re-developed and the demolition of the old industrial buildings revealed that the Taylors' tombs were still intact. On 28 August the graves were excavated with the surrounding soil and moved to a local church where they will be reburied in a memorial garden.  Picture of gravestone and stele at Xuande Church in Zhenjiang. Gravestone is underground in a pit where the church is awaiting construction of a proper memorial hall - timeline for completion of memorial hall is postponed according to church officials. [1] Dedication marker is outside under a tarp covered up unless visitors know it is there. [2] Currently in possession of Xuan De Tang (Zhen Jiang Shi ) as of July 2016.

Did Taylor die in China?
he visited Yangzhou and Zhenjiang and other cities, before dying suddenly while reading at home in Changsha.