Before the mid-1990s, Chinese ground forces relied on the Type 63 amphibious light tank developed in the early 1960s.

The low swimming-speed and weak firepower of the Type 63 was insufficient to the needs of modern maritime amphibious assault operations that PLA would conduct.

Compared to the Type 63, the Type 63A featured five major improvements: enhanced sea travelling performance, increased swimming speed, improved fire-control system, ATGM capability, and larger 105 mm rifled gun with dual stabilizers.

A redesigned welded turret from the original Type 63 is mounted at the center of the hull, with the powerpack positioned in the rear.

The 105 mm rifled gun fires armor piercing fin stabilized discarding sabot (APFSDS), high explosive (HE), and high-explosive anti-tank (HEAT) ammunitions, and GP105 laser beam riding guided missiles.