From historical classics to new kinetic energy, Shuijingfang sets an example for industrial upgrading during the "14th Five-Year Plan" period

In 2026, the “Fifteenth Five-Year Plan” period officially kicks off. “Industrial and technological self-reliance,” “cultivating new quality productive forces,” and “strengthening the dual-circulation system grounded in the domestic circulation system” have become the core of the policy. At the same time, the liquor baijiu industry is undergoing a historic turning point—the Ministry of Industry and Information Technology has, for the first time, classified the distilling and brewing industry as a “historically classic industry,” signaling that this traditional advantage industry is moving from a “restricted” status into a new stage of “strategic support.”

Against this backdrop, Shui Jing Fang, rooted in Chengdu, has become a vivid example for observing the transformation and upgrading of China’s baijiu industry, thanks to its distinctive foreign-capital DNA and deep local cultivation practices. From its cooperation intent with Diageo in 2006—opening the precedent of foreign capital participating in the baijiu industry—to its current role in leading high-quality development in the Chengdu production area as a “chain leader,” Shui Jing Fang’s story is not only the history of the company’s own growth, but also a vivid footnote to China’s high-level opening-up and the progress of industrial modernization.

From “breaking the ice” to taking root—twenty years of foreign capital融入 China’s innovation chain

In 2006, when Shui Jing Fang reached cooperation intent with Diageo, a global spirits giant, it was during a policy environment in which the “Catalogue of Industries for Guiding Foreign Investment” required that “high-quality baijiu must be controlled by Chinese parties.” With support from the governments of Sichuan Province and Chengdu City, Shui Jing Fang was listed as an opening-up pilot in the baijiu industry. Through innovation in equity structure, it achieved foreign-capital full ownership control in 2013. This case directly promoted revisions to related policies in 2014, removing the restriction on foreign-capital control of baijiu.

Twenty years later, this “downward-rooted” determination is reflected in tangible local investment. It is understood that the Phase 1 project of Shui Jing Fang’s Qujingliang full-industry-chain base has completed an investment of RMB 2.76B and has been put into operation. Phase 2 is planned to invest RMB 4.05B and commenced construction in June 2024. With total investment of roughly RMB 6.8 billion, it is not only a capacity-building initiative, but also a strategic move by Shui Jing Fang to actively integrate into China’s innovation chain and upgrade its industrial chain.

More importantly, Diageo has injected internationally oriented corporate management experience and a sustainable governance framework into Shui Jing Fang. At the same time, Shui Jing Fang has not remained in a one-way model of “importing foreign capital.” Instead, it has actively embedded itself into the local innovation ecosystem. It is understood that in recent years, Shui Jing Fang has cooperated with the Institute of Microbiology of the Chinese Academy of Sciences, continuously increasing research and development investment. It has conducted genomic mapping analysis of the “No. 1 microbial consortium” for ancient cellar pits, and, building on the current stage of research achievements, it is focusing on long-term fundamental scientific research to provide scientific support for improving product quality.

In today’s broader environment, this two-way empowerment of “international experience + local research” is precisely the micro-level practice of “industrial and technological self-reliance” emphasized in the “Fifteenth Five-Year Plan.”

From manufacturer to organizer of an industrial ecosystem—promoting coordinated development across production areas

In 2025, in the Ministry of Industry and Information Technology’s “Guiding Opinions on Promoting High-Quality Development of Historically Classic Industries (2026–2030) (Draft for Comments),” the distilling and brewing industry was formally included as a “historically classic industry” for the first time. This policy reorientation means that the baijiu industry is moving from the past “restricted development” into a new stage of “strategic support.”

With the policy headwind, Shui Jing Fang, as the “chain leader” enterprise in the Chengdu baijiu production area, is shifting its role from a single manufacturer to an organizer of an industrial ecosystem. It is reported that as of early 2025, Shui Jing Fang’s total procurement amount from suppliers in the Greater Chengdu region exceeded RMB 750 million, helping form an industrial development cluster integrating baijiu brewing, packaging production, glass bottle manufacturing, and warehousing logistics.

This “chain leader” leading role aligns with the policy guidance in the “Fifteenth Five-Year Plan” recommendations: “optimize and upgrade traditional industries” and “promote quality improvement and level-up of key industries.”

Not only that, Shui Jing Fang also supports value conversion between industry and city by launching Chengdu’s first alcohol-and-tourism integration route, linking cultural landmarks such as the Shui Jing Fang Museum, Du Fu Thatched Cottage, and He Ming Tea House. In the baijiu industry, “alcohol-and-tourism integration” has become one of the hot development terms in recent years, because it is not only an innovation in consumer scenarios, but also a practical pathway for the living inheritance of a “historically classic industry.” Shui Jing Fang takes consumers as the center, innovates in how baijiu culture is expressed, and is seen as a concrete manifestation of long-termism.

Green “smart” manufacturing pioneers—defining new quality productive forces through sustainable development

The “Fifteenth Five-Year Plan” recommendations make it clear that the country should coordinate progress in reducing carbon, reducing pollution, expanding green coverage, and increasing growth, and build an ecological security barrier. Under the guidance of the “dual carbon” goals, China’s baijiu industry is accelerating its transition toward green and intelligent development.

It is worth noting that Shui Jing Fang is one of the earlier companies in the industry to systematically formulate and publish sustainability targets. In 2024, the company released “Shui Jing Fang’s 2035 Sustainability Targets,” setting 26 specific, measurable goals across ten major areas, including energy management, carbon emission reduction, and utilization of water resources. At the Qionglai base, environmental initiatives such as biogas recovery and power generation, 100% compliant wastewater discharge, and the recycling of waste distilling grains have already been implemented. Multiple buildings have also earned international LEED green building Gold certifications.

While advancing green transformation, Shui Jing Fang has also actively embraced the wave of digital intelligence. Phase 1 of the Qionglai full-industry-chain base, through automated technological upgrades, has greatly improved production energy efficiency while preserving the essence of traditional brewing processes. Meanwhile, ongoing research on the “No. 1 microbial consortium” provides a scientific foundation for moving brewing modernization from an “experience-driven” approach to a “data-driven” one.

Based on the above practices, Shui Jing Fang’s sustainability practices have gained recognition from major global ESG rating institutions. Its MSCI ESG rating has been upgraded to the BBB tier, and it has been selected for the S&P Global “Sustainability Yearbook (China Edition)” for three consecutive years. This is both an acknowledgment of the company’s effectiveness in green transformation and a demonstration of the distinct advantages foreign-capital enterprises have in delivering high-quality products and services.

From this, it is evident that at the new starting point in the opening year of the “Fifteenth Five-Year Plan,” Shui Jing Fang—through solid capacity planning, deep innovation integration, and systematic green transformation—provides a sample that can be referenced for the deep integration of traditional distilling and a modern industrial system. From “opening-up pilot” to “chain leader leadership,” this Chengdu-rooted baijiu enterprise is interpreting the era’s connotations of high-quality development in China’s baijiu industry through its own practice.

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