The attraction in Sichuan province, about 930 miles from the sea, will let hundreds of people at a time experience the shipwreck.
The Titanic was built in east Belfast.
Former Lord Mayor of Belfast Jim Rodgers said he had asked the Chinese firm behind the 1bn yuan (£100.7m) project to reconsider their plans.
Mr Rodgers said his grandfather had worked on building the Titanic at the Harland and Wolff shipyard, and he felt the iceberg simulator would offend “many of those who lost loved ones” when the ship sank on its maiden voyage in April 1912.
“I don’t think it should be done in this fashion,” he said.
“The ship was perfect when it left these shores in Belfast, Northern Ireland, and unfortunately it struck an iceberg, but for people to try and make money out of that is disgraceful and shameful.”
The vessel, the largest luxury ship in its time, struck an iceberg on its maiden voyage from Southampton to New York. It went down on 15 April 1912, leaving more than 1,500 people dead.
Su Shaojun, chief executive of the Seven Star Energy Investment Group that funded the project, said “the universal love and sense of responsibility shown during the Titanic shipwreck represent the spiritual richness of human civilization”.
“When the ship hits the iceberg, it will shake, it will tumble,” he said. “We will let people experience water coming in by using sound and light effects ... They will think, ‘The water will drown me, I must escape with my life’.”
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