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.
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.
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.
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?
Jo Ann