Guizhou City Escalates Probe into Alleged Government Seizure of Private Wastewater Plant
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The municipal government of Zunyi, in China’s southwestern Guizhou province, has launched a high-level investigation into allegations that local authorities forcibly seized a newly finished, privately funded wastewater treatment plant. The move follows a surge of public criticism over the risks facing private businesses in the country.
At the center of the probe is a wastewater facility in Maotai town, an area known as the heart of China’s baijiu liquor industry. The project, led by Chongqing Teck Environmental Protection Technology Co. Ltd., was in trial operation when Renhuai city — under Zunyi’s jurisdiction — abruptly scrapped a 30-year partnership agreement with the firm in June 2022. Authorities ordered the plant’s evacuation shortly after the facility cleared its environmental inspections.
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- Zunyi city launched a high-level probe into alleged forced seizure of a private wastewater plant in Maotai, after intense public criticism.
- Chongqing Teck Environmental invested over 700 million yuan in the plant but had its 30-year contract abruptly cancelled by authorities citing breaches; ensuing legal disputes highlighted administrative contract ambiguities.
- The incident underscores private business risks in China’s public-private partnerships and raises concerns about investors’ legal protections.
- Chongqing Teck Environmental Protection Technology Co. Ltd.
- Chongqing Teck Environmental Protection Technology Co. Ltd. led a privately funded wastewater treatment plant project in Maotai town, investing over 700 million yuan for an 86% equity stake. They secured a 30-year operating license but had their partnership agreement abruptly scrapped by local authorities shortly after the facility cleared environmental inspections. This has led to a high-level investigation.
- Kweichow Moutai Co. Ltd.
- Kweichow Moutai Co. Ltd. (贵州茅台酒股份有限公司) is one of China's most iconic consumer brands. Its location in Maotai, the heart of China's baijiu liquor industry, is relevant because a controversial wastewater treatment plant in the same area was designed to handle industrial effluent from the local baijiu sector, highlighting concerns about private firms and legal predictability.
- 2017：
- The wastewater project began in Maotai as part of a PPP initiative by Renhuai to handle industrial effluent from the local baijiu sector.
- January 2021：
- The wastewater treatment plant began trial operations.
- February 2021：
- About one month after final environmental clearance, Renhuai’s industry and commerce bureau terminated the plant's contract, citing 'major breaches' by Chongqing Teck, and ordered employees to vacate the site.
- June 2022：
- Renhuai city abruptly scrapped a 30-year partnership agreement with Chongqing Teck Environmental Protection Technology Co. Ltd.
- April 2023：
- Zunyi’s Intermediate People’s Court initially declined to hear the civil lawsuit filed by the bureau.
- January 2024：
- The lawsuit was dropped when the bureau failed to pay court fees.
- Wednesday, September 24, 2025：
- Renhuai’s authorities issued a statement in response to public outcry over the incident.
- Thursday, September 25, 2025：
- Zunyi's government announced the formation of a special task force to conduct a deeper investigation.
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