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It is rare for a chin to be this way, more than likely, it has been mistreated in the past. Chinchillas are like elephants ... they have L-O-N-G memories and are often hard to get acquainted with a new person/place and/or situation. Patience, time and determination will usually win out in the long run.
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But ... if it is a conflict of personalities, you're in trouble. That's very rare, but does happen occasionally.
We've had two that were similar ... it took us about a year with one and we are still working with the other one. The second one is named Fuss Budget.
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I agree with the others on moving some of the objects from the old cage to the new one.
The larger cage would normally be greatly appreciated by a chinchilla, but for those who are timid or feel insecure ... the smaller cage makes them feel more confined/safer and is or has become their "security blanket. You've taken away his security blanket ... I would let him visit it at least once a day and keep it in his site constantly so that he will know it will still be there if he needs it.
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When you let him have playtime outside of the cage ... how do you catch him, if he is not friendly, to put him back into the cage?
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Jo Ann