Consists of Xuanhua, Zhuolu and Huailai to the north of the Great Wall. With abundant sunshine, mild temperature, large day-and-night temperature variation, cool summer, dry climate, relatively scarce annual rainfall of 413mm, active accumulated temperature of 3,532°C, and sandy drab soil, this district is ideal for grape growing. Dragon Eye and Milk grapes are local varieties here, while some world famous varieties as Cabernet Sauvignon and Merlot have been introduced in recent years.

In 1976, Huailai was designated by the State as the national base for winemaking raw materials, and is a high-grade wine producing area after the “opening and reform” in China. The Research on Dry White Wine New Technology, a light industry key scientific research project undertaken by the National Foodstuff Fermentation Institute and China Great wall Wine Co., Ltd. (the former Shacheng Winery), was appraised by the National Scientific and Technological Committee. After 20 years’ development, the county now has grape plantations of 800,000mu, of which Dragon Eye accounts for 400,000mu, wine grape varieties Cabernet Sauvignon, Cabernet Gernischt, Merlot, White Riesling, and Chardonnay 400,000mu.

China Greatwall Wine Co., Ltd. is a large scale wine-making mainstay enterprise established on China’s own technologies, and is one of the “triumviate” of the County’s industries with an annual capacity of 800,000 tons. For the time being, grape and wine enterprises are being invested and developed by Beijing’s Bao le lijia,Rongchen Company and French Agricultural Department .