Following deliveries of Soviet PT-76 amphibious tanks, the Chinese decided to develop an indigenous variant which became the Type 63 (ZTS-63). The Type 63 shares the general boat-like hull design and layout of the PT-76, albeit with a shallower glacis plate. However, the turret is completely different, being a cast rounded design reminiscent of the Type 62 light tank. Armament consists of a Type 62-85TC 85-mm rifled gun which is similar to that on the Type 62 tank. However, this was later upgraded to a more powerful ZPL-83 105-mm gun on later variants. There is also a co-axial Type 54 12.7-mm and a turret-mounted Type 59T 7.62-mm machine gun (a second one can be equipped optionally). Amphibious capability is provided through twin water-jets of Russian design; like many amphibious vehicles, a trim board must be erected at the front of the hull before entering the water and bilge pumps switched on. There is no NBC protection or night vision equipment although a laser-rangefinder is provided and a computerized fire-control system is fitted on later units. Modernized versions of the Type 63 remain in PLA service, likely for the purpose of a potential invasion of Taiwan. It has been exported to numerous Chinese client states, notably Vietnam which used it in the Vietnam War and later, the Sino-Vietnamese War. Like the Type 62, it suffered due to relatively thin armor but showed great mobility in terrain that was difficult for heavier tanks.

Initial development for an amphibious tank resulted in the Type 60 which was later refined into the Type 63 (industrial designation WZ-211). An engine upgrade with nearly double the horsepower resulted in the Type 63-I and this was followed by the Type 63-II with infrared night vision and a laser rangefinder. A more significant modernization resulted in the Type 63A with superior amphibious capacity, more powerful engine, and hull extensions for increased buoyancy. Firepower was also increased thanks to a new ZPL-83 105-mm gun mounted on a redesigned all-welded steel turret. Further sub-variants include the Type 63A-I with bow extensions and extra bolt-on armor, and the Type 63A-II with even further armor bolt mounts. The Type 77 APC is based on the Type 63 and is described separately.