(Yicai Global) July 5 -- China’s southwestern province of Sichuan aims to create a world-class premium baijiu industry cluster, according to a recently published policy document, in a bid to better compete with Guizhou province-based producers such as Kweichow Moutai.

Sichuan intends to consolidate and enhance the quality and reputation of Sichuan-made baijiu and increase the share of locally produced liquors worldwide, the document said without providing much detail.

The province, which mainly produces strong-aroma baijiu, has introduced policies to support the development of the industry almost every year since 2015. Some encouraged financial institutions to increase fixed-income investment in baijiu makers and enhanced the set up of local brands.

Sichuan’s baijiu industry is not small, but faces fierce competition from Guizhou’s Jiang-flavor Chinese spirit makers, especially Kweichow Moutai, Luo Ling, dean of Sichuan’s provincial economy research institute, told Yicai Global.

Sichuan boasts six renowned baijiu brands -- Wuliangye Yibin, Jiannanchun, Luzhou Laojiao, Langjiu, Quanxing, and Tuopai -- but they lack coordination, Luo noted. Wuliangye should be promoted to become the province’s leading player and take on Kweichow Moutai, he added.

Guizhou’s produced more than CNY140 billion (USD19.3 billion) of the popular Jiang-flavor spirits last year. The industry’s revenue and net profit in Guizhou reached CNY125.2 billion and CNY97.5 billion (USD13.5 billion), accounting for about 19 percent and 44 percent, respectively, of the country’s total.

Sichuan makes a little more than half of China’s strong-aroma baijiu, with its baijiu industry’s revenue and profit making up 52 percent and 34 percent, respectively, of the national total.

Editors: Zhang Yushuo, Futura Costaglione