The ZTZ-99 is China's first third generation tank, and represents the closest attempt to produce an indigenous design to rival contemporary Western and Russian models. The hull of the ZTZ-99 retains similarities to that of the T-72 and features a conventional layout in an all welded steel design with composites and ERA over the frontal arc. The turret veers sharply from early Chinese designs and strongly resembles that of the Leopard 2 due to its arrow-shaped modular armor at the front as well as the large bustle. Protection is further enhanced with soft- and hard-kill systems, the former modeled after the Russian Shtora-1. M1-style stowage racks are also fitted to the turret sides. The 125-mm ZPT-98 smoothbore gun is the latest Chinese adaptation of the Russian 2A46M and can fire a variety of ammunition including depleted uranium APFSDS rounds, HEAT rounds, and can fire ATGMs. Armor protection is also considerably superior than previous Chinese tanks and is claimed to be equivalent to 1200 mm (including ERA) at the front on the most recent variant. Like Russian tanks, it is fitted with a carousel-style autoloader and can allegedly fire a Chinese version of the AT-11 while dual axis stabilization allows it to fire on the move. Equipment is from both Chinese as well as Western origin or influence, and includes a laser rangefinder, laser dazzler, thermal sights and a computerized fire-control system. The Type 99 is currently in service with the PLA, complementing the ZTZ-96 as China's main third-generation main battle tanks. It has not been exported.

Development of the ZTZ-99 (industrial designation WZ 123) began in 1984 and the first prototypes were ready in 1992. Pre-production versions were incorrectly identified as the ZTZ-98 and these were distinguishable for having a sloped turret front reminiscent of the US M1. This was changed to the definitive arrow-shaped front more similar to the Leopard 2 and the ZTZ-96A, which it strongly resembles. It received a mid-life 'Phase II' upgrade with a revised turret and ERA protection. A major modernized 'Phase III' variant is known as the ZTZ-99A (incorrectly referred to as the ZTZ-99A2). This features a further redesigned and larger turret as well as a raised hull, thicker armor, a hard-kill active protection system, and a more powerful engine among other electronic and equipment upgrades.