Well, that device is for ZTZ99 MBTs optical counter-measurement
purpose. It only responds to hostile laser ranger finder but not
the naked eyes of enemy. If it happens to be that the enemy naked
eyes are just behind the range finder devices then, of course the
ZTZ99s laser active countermeasurement device will burn the eyes
alongside with the optical devices it aims at.
Quoted from Sinodefence.com
http://www.sinodefence.com/army/tank/type99.asp
Electro-Optical Countermeasures
The Type 99 MBT utilises a unique electro-optical countermeasures
suite, which is located on the turret roof behind the gunner hatch.
The system comprises a laser warning receiver (LWR) and an
box-shape active laser self-defence weapon (LSDW), which was
designed to use high-powered laser to attack the enemy weapon's
optics and gunner. Once the LWR detects that the tank is being
illuminated by an enemy range-finding or weapon-guidance laser, the
system warns the tank crew and the LSDW is employed against the
source of the enemy laser. The LSDW can disrupt the laser/infrared
guidance signal of the enemy missile, disable the enemy observation
optics (optical, night vision, thermal imager, laser rangefinder,
etc.), and damage the eyesight of the enemy gunner. Photos of the
Type 99 showed that the LSDW can be elevated to a higher angle than
the tank's main gun, indicating that the engagement of attack
helicopters is possible