CHINA

Guizhou City Returns Seized Wastewater Plant to Private Investor After Probe

Published: Feb. 13, 2026 6:15 a.m. GMT+8

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At the center of the dispute is a 2017 public-private partnership, or PPP, agreement aimed at treating wastewater generated by baijiu production

Local authorities in southwestern China have returned control of a wastewater treatment plant to a private investor, acknowledging that a previous government takeover of the facility was illegal and constituted a breach of contract. The move marks a rare reversal following a high-level investigation into a dispute that had shaken confidence in the private sector.

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Zunyi authorities in Guizhou, China, returned a wastewater plant to private firm Chongqing Taike after ruling Renhuai’s 2022 takeover illegal.
The disputed PPP project, valued at 820 million yuan, supports the regional baijiu industry but saw government and company governance faults, including environmental and safety issues.
The case underscores legal uncertainty for private partners in China, with disciplinary action against involved officials and unresolved litigation withdrawn in January 2024.

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Who’s Who

Chongqing Taike Environmental Protection Technology Co. Ltd.: Chongqing Taike Environmental Protection Technology Co. Ltd. led a project company in a public-private partnership to build and operate a wastewater treatment plant in Renhuai, Zunyi. They held an 86% stake after contributing over 700 million yuan to the 820 million yuan project. The Renhuai government unlawfully seized the plant in 2022 but later returned control to Chongqing Taike in February 2025.

Kweichow Moutai Co. Ltd.: Kweichow Moutai Co. Ltd. is a prominent Chinese consumer brand producing baijiu, a sorghum-based liquor. Its operations are centered in Maotai town, Guizhou province. The company is indirectly involved in a wastewater treatment plant dispute, as the plant was designed to serve the region's baijiu industry, including Kweichow Moutai.

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What Happened When

2017：: A public-private partnership (PPP) agreement was established to treat wastewater generated by baijiu production; Chongqing Taike and a state-owned enterprise won the contract, securing a 30-year concession.

January 2021：: The wastewater treatment plant began trial operations.

June 2022：: The Renhuai Industry and Commerce Bureau issued a notice citing alleged 'serious breaches' by the company, terminated the PPP agreement, ordered employees to remove their belongings, and took control of the plant.

After June 2022：: The Renhuai industrial bureau sued the company in an effort to validate its termination of the contract.

January 2024：: The court case between Renhuai industrial bureau and the project company was deemed withdrawn after the government plaintiff failed to pay court fees.

September 2025：: Nationwide attention was drawn to the dispute after media reports detailed the conflict; the Zunyi government launched an escalated investigation.

February 4, 2026：: Control of the wastewater treatment plant was formally transferred back to the project company led by Chongqing Taike.

February 12, 2026：: The Zunyi municipal government publicly acknowledged that Renhuai officials had acted unlawfully in the 2022 seizure and announced the return of the plant to the private investor.

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