The PLAN began designing a warship armed with guided missiles in 1960 based on the Soviet Neustrashimy, with features from the Kotlin-class destroyer, but the Sino-Soviet split stopped work.

On 9 March 1978, at 8:40pm, while the ship was docked in Zhanjiang Port, Guangdong Province, an explosion rocked it.

[3] After nearly half a year of investigation by a joint team of the General Staff, Navy, and Fleet, the explosion was found to have been caused by a lieutenant cadre, Lai Sanyang (赖三羊), who worked in the armory.

(An alternate theory postulates that Lai was, in fact, a suspect for murdering the woman and had been suspended from duty instead of fully dismissed pending further investigation[5]) But Lai begged his superiors not to demobilize him, as he would be forced to return to his hometown; he had become hated there due to the suicide.

Following his dismissal, Lai hid in the ammunition depot and detonated the depth charges, sinking the ship.