However, a worsening environment could pose a severe threat to the sustainable development of Kweichow Moutai, he noted.
Kweichow Moutai Co..Ltd., the liquor producer, announced that over the next five years it would increase its annual production of base liquor by 20,000 tons, which is almost 87 percent over its 2009 output level.
Today's Moutai wine originated during the Qing Dynasty. Crowned as China's national wine, Moutai has been appointed as a state banquet staple for feasts with foreign heads of state and distinguished visitors.
Its international prominence grew when Premier Zhou Enlai presented the liquor to entertain Richard Nixon at the state banquet during the US presidential visit to China in 1972.
However, densely polluted Moutai Town faces an air pollution problem and suffers from a water shortage, which have hindered the distillery's expansion and threaten the liquor's quality, said Liu Qiang, chief of the environment department of Kweichow Moutai.
Moutai Town plans to gradually move away the nearly 16,000 residents living nearby, or in the brewing zone of Moutai, to the residential area of "New Town of National Liquor" under construction in the nearby Renhuai City.
"We may have to adjust to living in a new place," said Wang Faqiang, a middle aged taxi driver living in the town.
Wang said the Kweichow Moutai company may not let us "suffer great losses". Except for the new apartment, the local government and the company would compensate the relocated shops' owners with new stores.