The impact of industrial robot development on the economy has long been a subject of keen interest. This research aims to explore the role of industrial robots in the Chinese economy and the factors influencing their impact. This is achieved through an analysis of the scale of the industrial robot market, its applications, the localization process, and its effects on employment and production efficiency. In the course of this study, we review the rapid growth of the Chinese manufacturing sector and the increasing adoption of industrial robots. With technological advancements, industrial robots have achieved significant milestones in fields such as automobile manufacturing and electronics production. Subsequently, this paper delves into the repercussions of industrial robots on the Chinese economy. Data indicates that the widespread use of industrial robots has significantly enhanced production efficiency, lowered production costs, and improved product quality. Furthermore, the paper scrutinizes the progress of domestication in the industrial robot sector, highlighting China's positive strides in enhancing its capacity for independent research and development, as well as manufacturing. Consequently, the rapid development of industrial robots has exerted a multifaceted impact on the Chinese economy, fostering both production efficiency and industrial upgrading, while also giving rise to a series of employment and societal issues. In the future, China should continue to intensify its efforts in technological innovation and talent development to better address the challenges and opportunities arising from the development of industrial robots, thereby promoting sustained and healthy economic growth.