Is it possible for Fufeng County to withdraw from the county and form a district?

Possibly. According to documents from the State Council, the State Council approved the adjustment of the administrative boundaries between Baoji City and Wugong and Fufeng counties by Shaanxi Province to the Shaanxi Provincial People's Government. It was agreed that Shaanxi Province would transfer Yangling Town, Yangling Commune and Fufeng County in Wugong County to Baoji City and establish Yangling District. Fufeng County has been divided into districts.