Type 63 entered production and service in 1963. The initial production variant was quickly replaced by the Type 63-I which had a more powerful engine, the Model 12150-L2 12-cylinder liquid-cooled diesel engine. In all more than 1,550 Type 63 and Type 63-I amphibious light tanks were made. The tank was designed to operate in the wetland regions and rice paddy fields of southern China (duties also performed by the earlier non-amphibious Type 62 light tank). The Type 63 was intended for inland river and lake crossing operations and amphibious landing in the coastal regions and can swim long distances in harsh sea conditions at high speeds. It can also support infantry in the attack and engage lightly armoured vehicles and fortifications. It can also be used in reconnaissance and patrol roles. Type 63's high amphibious ability was proved in 1966 the Type 63s crossed the 31 km long Qiongzhou Strait between mainland China and the Hainan island.
Later the tank was also adopted by the People's Liberation Army Marine Corps for the amphibious assault operations along with various other amphibious units stationed near the Taiwan straits. Some Type 63 and Type 63-I amphibious light tanks were upgraded to Type 63-II standard in the 1970s. The original Type 63 and Type 63-I amphibious light tanks has been gradually phased out since the late 1990s and replaced by the more capable Type 63A which entered service in 1997. The PRC currently has an estimated number of 800 of both types, though only around 300 of these are Type 63A, Type 63A-I and Type 63A-II, the remainder being Type 63-II and old Type 63 and Type 63-I amphibious light tanks. The original Type 63 and Type 63-I amphibious light tanks are kept in reserve and for training purposes. Because the Type 63A was mostly designed for amphibious operations against Taiwan, it is presumed that it would be the basic vehicle used in an amphibious invasion of Taiwan Island.
The Type 63 was exported to Albania, Pakistan, Myanmar, Cambodia, Sri Lanka, North Korea and Vietnam. It saw action during the final phases of the Vietnam war, the Sino-Vietnamese War and the Sri Lankan Civil War. By all accounts, the Type 63 showed great mobility in terrains that are difficult for the heavy tanks, but its thin armour has caused heavy losses and casualties.
- 1959 - 1975 Vietnam war
- 1979 Sino-Vietnamese War
- 1983–2009 Sri Lankan Civil War