The ZBD-04 is China's most advanced tracked IFV, and is based strongly on the Russian BMP-3 of which numerous technology rights were acquired. The main difference with the BMP-3 is the hull, which is more sharply angled and boat-like in the ZBD-97 and features a different layout with the driving compartment at the front left, engine compartment to the right, turret crew in the middle and troop compartment to the rear (one infantryman sits next to the driver). Firing ports are provided on each side of the hull as well as on the rear door. Amphibious capability is afforded thanks to two large water jets in the rear, and also features an NBC protection system. The two-man welded aluminum turret is very similar to that of the BMP-3, and features the same armament configuration consisting of a 100-mm gun and Chinese-built version of the 3UBK10 ATGM. Other equipment include night vision systems, computerized fire control, electro-mechanical gun stabilizer, and laser rangefinder. The ZBD-04 is currently in widespread service with the PLA replacing the Type 86 and no export orders are known of.

The ZBD-97 was initially revealed in 1997 and was based on technology rights obtained for the BMP-3. And improved version is known as the ZBD-04 and is the type currently in service with the PLA. A more modern variant, the ZBD-08 has also been developed but may not be in production or in service with the PLA yet. An armored recovery vehicle has also been produced with a crane mounted on the left side of the hull.