The 30ft erection, named Sky Pillar, has been built at Longwan Shaman Amusement Park in Changchun city.
Builders wrapped more than 6,500ft of straw around the steel structure which stands on an altar atop 1,250ft high Qinlong Hill.
"It is a totem of Shamanistic culture, which originated in this city," says the president of the park, Cheng Weiguang.
Legend says a Shaman hero named Ewenki vanquished a cruel female ruler and gave her a penis totem, telling her to respect males and not kill them at will.
After this, the ruler set a penis totem on top of the hill, reports East Asia Economic and Trade News.
Shi Lixue, director of the China Folk Culture Association, backed the project, saying: "It symbolizes our ancestors' pursuit of happiness and prosperity."
And, although some tourists said they felt uncomfortable about the statue, others were unmoved.
"It's just a pillar. I don't care. It can be a symbol of the park," said one mother who was visiting the park with her child.