The invention relates to a portable Chinese-sensible code reading machine and a reading method thereof. The reading machine comprises a housing, a display screen, a CMOS camera, a loudspeaker, a switch and a reading circuit. The reading circuit comprises an ARM embedded processor, an NAND memory unit, a FLASH memory, a WIFI module, a 3G module and a USB interface. The ARM embedded processor is respectively connected with the NAND memory unit, the FLASH memory, the WIFI module, the 3G module and the USB interface I/O. The reading method comprises a character database. The database can prevent a system operation speed from being reduced due to a complex coding conversion process, and ensures coding accuracy at the same time. The reading machine and the reading method provided by the invention have the advantages of accurate and rapid Chinese-sensible code reading, high anti-interference capability, high scalability, simplicity, easy use and good portability, thereby being suitable for Chinese-sensible code reading application on multiple occasions.