Judge Weir ordered Liu to pay the victims $20,000 in reparation before he left New Zealand and confiscated Liu's passport until it was paid.
Liu was also disqualified from driving for 18 months, though Judge Weir acknowledged the driving ban may be meaningless in China.
Liu's lawyer, Rachelle Cavanagh, said her client had been in New Zealand on a two-week holiday to celebrate the new year.
She said he had offered a $6000 emotional harm payment to the victims.
The accident was "his worst nightmare", he showed remorse and had understood the injuries caused were substantial, she said.
Judge Weir said he knew the stretch of highway where the crash happened well.
"There is no reason at all why an accident should happen on that road if someone was paying due care and attention. You were not," he told Liu.
Judge Weir said Liu "simply lost control", crossed the centre line and collided with the Germans' vehicle.
"This is just yet another example of people from overseas, who come to this country and get involved in serious accidents."
He said the number of accidents caused by foreign drivers on New Zealand roads was concerning.
"My concern is that a clear message needs to be sent out to foreign drivers who come into this country who cause this sort of mayhem.
"It happens more and more on our roads.
"The papers are full of accidents of this type, particularly over the holiday season."
Judge Weir said the victims were lucky to be alive.
" ... their lives will forever be affected by [Liu's] appalling driving."
From 2009 to 2013, the Rotorua region had 55 crashes involving tourists, making up 7 per cent of the total crashes in the area.
Nationally, overseas drivers were involved in 11 fatal crashes, 90 serious injury crashes and 448 minor injury crashes in 2013.
Of these, the overseas driver had primary fault in all of the fatal crashes, 78 of the serious injury crashes and 328 of the minor injury crashes, resulting in 13 deaths, 105 serious injuries and 508 minor injuries.
Last month the Rotorua Daily Post reported the New Zealand Transport Agency, alongside ACC, the Ministry of Transport, New Zealand Police, and local government had initiated a signature road safety project to focus on visiting drivers.
The project will look at the wider issue of crashes involving drivers visiting from other areas in New Zealand as well as overseas drivers.