Touch had begun offering five different sex doll types for daily or longer-term rent on Thursday in Beijing but quickly drew complaints and criticism.
The company said in a statement on Weibo it "sincerely apologised for the negative impact" of the concept.
But the firm stressed sex was "not vulgar" and said it would keep working towards more people enjoying it.
Touch told the BBC the rental service had operated for two days and had garnered a lot of interest and requests.
