The 18-year-old tested positive for hydrochlorothiazide, a diuretic, on August 8, the same day she took part in the women's 100m butterfly final, finishing fourth.
She is banned from competing for two years, from August 11 this year to August 10, 2018, Fina said in an announcement Saturday.
Diuretics increase urination rates and can be used as "masking agents" to hide the presence of performance-enhancing substances that are screened for in doping tests.
Chen first made headlines when she won gold in the 100m butterfly and 50m freestyle events at the 2014 Asian Games, with times that set championship records.
