The dolls would be delivered to the customer's address.
A spokesperson of Touch told last week that the service was aimed at young white-collar workers aged from 20 to 35 years old.
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The border trouble began in June when Chinese soldiers started to extend a road through the Doklam territory. The video posted by state mouth piece Xinhua follows a comedy show format with a host and canned laughter.
The host opens with: 'China realised it's impossible to awaken a guy who is asleep' before it then cuts to an actor.
The company said it had been investigated and fined by the authorities.
Touch apologised for causing 'negative social influence' in the lead up to the 'two sessions', the most important annual political meetings for the Communist Party of China.
Tension between India and China has heightened recently over a border standoff between the two countries.