It was designed to compete with the 5.56x45mm NATO cartridge.
The 5.45×39mm cartridge is a rimless bottlenecked rifle cartridge. It was introduced into service in 1974 by the Soviet Union for use with the new AK-74 assault rifle. It gradually supplemented then largely replaced the 7.62×39mm round in service.
The 5.45×39mm is an example of an international tendency towards relatively small sized, light weight, high velocity military service cartridges. Cartridges like the 5.45×39mm, 5.56×45mm NATO and Chinese 5.8×42mm allow a soldier to carry more ammunition for the same weight compared to their larger and heavier predecessor cartridges and produce relatively low bolt thrust and free recoil impulse, favouring light weight arms design and automatic fire accuracy.