A decent start from Hill, but Xiao shows his quality immediately with a break of 95 to continue his fine form.
McGill, with the help of a fluke shot, takes the first frame against Wilson.
The action has begun on both tables in Berlin, with Xiao and McGill making solid starts in the early stages.
Here is a look at today's quarter-final schedule:
China, Hong Kong and Saudi Arabia have been tipped as possible World Championship locations beyond 2027.
WST chief Simon Brownell has stressed snooker must continue to grow in that part of the world.
He said: "Riyadh has been hugely successful, Hong Kong is the icing on the cake for our expansion.
"We need to take it to new audiences, to deliver something that’s accessible to them and where they feel like they can engage, and touch the sport themselves."
World Snooker Tour chief Simon Brownell has hinted that World Championships could stay at the Crucible beyond 2027.
He told the South China Morning Post: "We’re in an agreement [with] Sheffield, we’re talking about continuing that agreement.
"Sheffield has been the home of the World Championships for almost 50 years now. It’s a special, special place.
"We’re talking to the team in Sheffield to make sure that event doesn’t lose as a result of that and putting in place ways to make that event as big as possible.
"It’s always difficult to get the balance right, between keeping the tradition and exploring new markets."
Aaron Hill is confident the fans at the German Masters will stay on his side in the quarter-final versus Xiao Guodong.
He said: "The crowd has been amazing all week. I'd like to thank them actually as they've been a great support to me.
"I beat Mark Williams in the first round and I think they like an underdog. Hopefully they can stay on my side."
Aaron Hill saw off a Tom Ford comeback yesterday to reach just his second ever ranking event quarter-final.
Despite his inexperience at this level, he remains composed and is not here to just make up the numbers, saying: "It's another game. I'll try to have the same preparation I've had all week, but it will be a tough match.
"That is what you expect when you are playing in this end of the tournament.
"I'm delighted to be here now, but hopefully I'm not finished yet."
Neil Robertson is looking to complete snooker and finally get his hands on one of the only trophies he is yet to win in his glittering career.
After beating Judd Trump 5-2 yesterday, the Aussie said: "Every player coming here wants to get down to the single table and I'm just one win away.
"This is pretty much the only tournament I haven't won. Motivation is extra high, if it wasn't already.
"I got to the final a few years ago here against Judd and it was an amazing occasion. The crowd love it.
"They get more enthusiastic the closer it gets to the final. They applaud even straightforward shots and it is a privilege to play here. I always get tremendous support in Germany."
Just two top-16 stars are in the German Masters quarter-finals.
And with Judd Trump as well as in-form Shaun Murphy exiting yesterday, reigning world champ Kyren Wilson is now the tournament favourite.
The World No. 2 takes on Scottish outsider Anthony McGill.
Xiao Guodong's 5-1 defeat of Elliot Slessor should further increase his confidence of beating Aaron in the other 2pm clash.
And the most intriguing match-ups might be at 7pm.
Ex-world champ Neil Robertson takes on Yuan Sijun, who impressively pipped Murphy 5-4 in the last 16.
And Chinese 21-year-old Yu Yize against World No. 12 Barry Hawkins could be the pick of the action.
Wu will surely break break into the elite rankings pretty soon and he beat Hawkins in their only previous contest - in Edinburgh just a month ago.
Schedule:
Neil Robertson's 5-2 defeat of world no. 1 Neil Robertson was the stand-out score in the last 16.
But Xiao Guodong and Wu Yize also impressed.
And a third Chinese star, Yuan Sijun, stunned new Masters champ Shaun Murphy 5-4.
Results:
Ricky Walden had to withdraw from yesterday's clash with Barry Hawkins on "medical grounds" after being taken to hospital.
Walden, 42, was targeting his first quarter-final place at a senior event since 2023.
But he pulled out overnight - with the nature of his condition not revealed.
A statement from the World Snooker Tour read: "Ricky Walden has withdrawn from the ongoing Machineseeker German Masters on medical grounds."
German snooker legend Rolf Kalb posted on X: "Bad news. Ricky Walden had to be taken to hospital last night and was therefore forced to withdraw..."
Shaun Murphy admitted he was suffering from a Masters "hangover" - and not expecting to win.
So perhaps that's why he didn't seem too surprised to slump 5-4 to Sijun Yuan - despite hanging in there and taking it all the way.
The Magician said: "I can assure you that there was a post-Masters hangover. Absolutely there was, if you’d have asked me to play snooker on Tuesday that would’ve been very difficult."
But he added: "I really want to ring out every last drop of potential from whatever’s left of my career.
"Maybe there could be 10 years, maybe there’s only five years. Who knows. But I really am determined to push on and not have such a big gap between successes."
Mark Allen claims he "hates" the German Masters and won't play there again unless it dramatically changes.
Allen has long loathed the Tempodrom venue - well before his crushing loss to Wu Yize this week.
And he posted on X: "Not to be in this years German Masters. Well done to Wu. Anyone who sees me back at this event under current conditions has permission to tell me off. Thanks in advance."
The Northern Ireland star added: "So (my) hate/hate affair with the German Masters continues. Seriously hate the event. So distracting for all players who aren't on table one.
"Will not be back until set-up changes. Such a shame by the way about Germany as it has the potential to be amazing. Great venue and packed crowds every day. Set-up must change though."
Sijun Yuan held his nerve well in a ninth-frame decider to beat Shaun Murphy 5-4.
The Chinese star took the frame 62-8.
Earlier breaks of 76, 78 and 127 put him 3-2 before Murphy levelled at 3-3 and 4-4.
But Yuan deservedly triumphed by taking the final frame.
It's been a cagey start to the deciding frame.
Shaun Murphy put together his second decent break of the eighth frame to mean this final match of the night is going all the way.
Sijun Yuan took the seventh frame to move one from a notable victory over Shaun Murphy.
But Murphy is well on top in the eighth frame, developing a break beyond 30 so far.
Neil Robertson is moving smoothly ahead to put victory in sight over Judd Trump.
Aaron Hill's 74 break gave him a thrilling 5-3 win over Tom Ford, who had trailed 4-0.
Neil Robertson's 86 clearance moved him 4-2 up over Judd Trump.
And Aaron Hill is building what could be a match-winning break to ruin Tom ford's comeback.
Neil Robertson took the fifth frame 64-6 to move in front against Judd Trump in a truly tense clash.
Shaun Murphy is trailing in the seventh frame at 3-3 against Sijun Yuan
And Tom Ford has won three frames in a row brilliantly when all seemed lost against Aaron Hill.
The English ace needs one more to take it all the way.
Breaks of 86, 56 and 77 took Hill from 4-0 down to only 4-3 behind.
Shaun Murphy eked out the sixth frame 63-33 to go all square again with Yuan Sijun.
And Neil Robertson appears to be in control as he bids to move 3-2 clear of Judd Trump.
But Trump is back at the table with a sniff of a decent break.
Neil Robertson is well placed for a significant break in the fifth frame against Judd Trump.
The Reds are spread gently and invitingly as the Aussie builds calmly,
points better in the fifth frame to take the match lead.
Legends Judd Trump and Shaun Murphy have plenty of work to do to reach the quarter-finals.
And in fact a brilliant 131 break from Yuan Sijun has just put him 3-2 up against Masters champ Murphy.
He rattled off 102 to level at 2-2 before he went 29 points better in the fifth frame to take the match lead.
