The missile was developed by the third research institute of the Chinese Aerospace Group, also the manufacturer of the C-701.

The radar seeker armed version is the only version appeared at the sixth Zhuhai airshow, at which the manufacturers confirmed that the development of imaging infrared and television, laser seekers had already been in progress, and like the C-701, the C-704 would eventually become a general-purpose air-to-surface missile that could engage various targets.

[1] On 16 March 2011, Israel Defense Forces allegedly intercepted a shipment of six C-704 missiles with launchers and Kelvin Hughes radar units, along with other munitions aboard the Liberian-flagged cargo vessel Victoria managed by a French shipping company en route from Turkey to Alexandria in international waters by Israeli Navy.

[2][3] In 2013, Bangladesh Navy corvette BNS Dhaleshwari fired four C-704 anti-ship missiles in a domestic naval exercise with all four of them hitting their target successfully.

The first missile failed to launch on command but fired unexpectedly five minutes later and didn't hit the target.

Major improvements concentrated in following areas: Configuration, propulsion, warhead and guidance.

Previously Indonesia was planning on licensed/joint manufacturing the C-705 and installed them on Indonesian design and built KCR type fast attack craft.

[9] In addition, a data link is also incorporated to enable the operator to change the target after the missile is launched when needed, though the fire-and-forgot mode is still available at the same time.