Further development in 1983 of the Type 69-I MBT by No 617 Factory resulted in the Type 69-II MBT.

Main improvements include the installation of the Tank Simplified Fire-Control System with laser range-finder, rubber shielding for the side skirts, turret grid armour, hydraulic booster for the steering mechanism and main clutch, double pin rubber tracks, NBC system, automatic fire detection and extinguishing system, engine low-pressure alarm and smoke grenade launchers either side of the turret.

Further development of the Type 69-II MBT resulted in the Type 79 MBT which is covered in the previous entry.

Main armament consists of a 100 mm rifled gun which is stabilised in both elevation and traverse. This fires Chinese-developed HEAT, HE, APHE and APFSDS ammunition.

At least three types of APFSDS ammunition have been developed including one with a semi-combustible cartridge case.

The TSFCS consists of three main components, the TLR1A tank laser range-finder, a ballistic computer and the TGS-A tank gunsight. The TLR1A measures the distance to the target and this information is automatically fed into the ballistic computer which supplies information to control the automatic range-setting mechanism of the sight and simultaneously the gun control system and, sets the gun elevation required in order to hit the target.

The laser range-finder is mounted externally above the 100 mm gun and is vulnerable to shell splinters and small arms fire. The TSFCS-L, which is an option for the Type 69-II, has the laser range-finder combined with the gunsight in a single unit mounted inside the tank.

The gunner's day sight has a magnification of x3.5 (18° field of view) and x7 (9° field of view) while the gunner's night sight has a magnification of x7 (6° field of view) and a maximum effective range of 800 m.

The commander's day sight has a magnification of x5 (12° field of view) while the night sight has a magnification of 6 (8° field of view) and a maximum effective range of 500 m.

The laser range-finder has a range from 300 to 3,000 m and can calculate the correct aiming point for the 7.62 mm coaxial machine gun and the 100 mm main armament.

The Type 69 can also be fitted with the TSFCS-C, which can also be retrofitted into existing T-series tanks of Chinese and Soviet origin. This system consists of the gunner's sight, laser range-finder, fire-control computer, control panel and sensors for elevation and azimuth rates and cant, crosswind, air temperature and ammunition charge temperature. The computer calculates target range, direction and lead angle and also interfaces with the weapon stabilisation system.

The driver's day periscope can be replaced by a night periscope with a range of 60 m and a 30° field of view.

The Type 69-II has a Type 889 radio and a Model 803 intercom for the commander, gunner, loader and driver. There are two command versions of the MBT. The Type 69-II Mk B command tank has one Type 889 radio and one Type 892 radio while the Type 69-II Mk C has two Type 889 radios.

Some Type 69 MBTs have been observed fitted with an external stowage bin on the turret rear and armour protection for the anti-aircraft machine gun. Thai Army Type 69-lls have had their Chinese 12.7 mm weapons replaced by US 12.7 mm M2 MGs.