Buddhism arrived in China around the 1st century CE, and introduced new types of art into China, particularly in the area of statuary.
Receiving this distant religion, strong Chinese traits were incorporated into Buddhist art.
Northern Dynasties

A Chinese Northern Wei Buddha Maitreya, 443 CE.
In the 5th to 6th centuries, the Northern Dynasties, developed rather symbolic and abstract modes of representation, with schematic lines. Their style is also said to be solemn and majestic. The lack of corporeality of this art, and its distance from the original Buddhist objective of expressing the pure ideal of enlightenment in an accessible and realistic manner, progressively led to a change towards more naturalism and realism, leading to the expression of Tang Buddhist art.
Sites preserving Northern Wei Dynasty Buddhist sculpture:
Longmen Grottoes, Henan
Bingling Temple, Gansu
Tang Dynasty
Following a transition under the Sui Dynasty, Buddhist sculpture of the Tang evolved towards a markedly life-like expression. Because of the dynasty’s openness to foreign influences, and renewed exchanges with Indian culture due to the numerous travels of Chinese Buddhist monks to India, Tang dynasty Buddhist sculpture assumed a rather classical form, inspired by the Indian art of the Gupta period. During that time, the Tang capital of Chang'an (today's Xi'an) became an important center for Buddhism. From there Buddhism spread to Korea, and Japanese embassies of Kentoshi helped it gain a foothold in Japan.

Tang Bodhisattva.
However, foreign influences came to be negatively perceived in China towards the end of the Tang dynasty. In the year 845, the Tang emperor Wuzong outlawed all "foreign" religions (including Christian Nestorianism, Zoroastrianism and Buddhism) in order to support the indigenous religion, Taoism. He confiscated Buddhist possessions, and forced the faith to go underground, therefore affecting the development of the religion and its arts in China.
Chán Buddhism however, at the origin of Japanese Zen, continued to prosper for some centuries, especially under the Song Dynasty (960-1279), when Chan monasteries were great centers of culture and learning.
Portrait of the Chinese Zen Buddhist Wuzhun Shifan, painted in 1238 AD, Song Dynasty.
The popularization of Buddhism in China has made the country home to one of the richest collections of Buddhist arts in the world. The Mogao Caves near Dunhuang and the Bingling Temple caves near Yongjing in Gansu province, the Longmen Grottoes near Luoyang in Henan province, the Yungang Grottoes near Datong in Shanxi province, and the Dazu Rock Carvings near Chongqing municipality are among the most important and renowned Buddhist sculptural sites. The Leshan Giant Buddha, carved out of a hillside in the 8th century during the Tang Dynasty and looking down on the confluence of three rivers, is still the largest stone Buddha statue in the world.