A hat-trick against hosts China had billed Gareth Bale to be the star attraction in Wale's final with Uruguay on Monday.
However, that wasn't to be, as a second-half winner from Cavani secured victory for the South American outfit in what would be Giggs' first defeat as Wales manager.
When asked about Bale's performance by reports after the match, Giggs replied: "The pitch had a big part to play in it as it wasn't ideal for dribbling or sticking the pass in.
"When Gareth gets the ball of course he is going to have players around him, they're not just going to let him get it.
"They recognise the quality he's got and make it difficult for him. But I thought he (Bale) was a threat all night."
Bale will now return to training with Real Madrid as their Champions League quarter-final clash with Juventus edges ever closer.