Workers are installing conduits and cables in the 10,000 -tonne vessel at Jiangnan Shipyard (Group) in Shanghai, state-run Xinhua news reported.
It will be equipped with new air defence, anti-missile, anti-ship and anti-submarine weapons, the report said.
Construction of the destroyer has focused on improving the ship's fighting capability, a military representative, Leng Jun, was quoted as saying in the report.
After soliciting opinions from military officers and soldiers, designers changed the original plan for helicopters on the warship, increasing the height of the cabins to improve the passing efficiency, a report by PLA Daily the official organ of the Chinese military said.
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To provide a more comfortable environment for soldiers on the ship, workers used new materials to protect against shock and noise and increased ventilation equipment in the destroyer's living cabins.
The vessel will have to undergo planned testing, including equipment operation, berthing and sailing, before it is commissioned for use, it said.
China recently has assigned a major role for the navy over and above the army as it expanded its global influence.
It has commissioned one aircraft carrier and building two more.