Ru-based catalysts have emerged as promising alternatives to HgCl2 in vinyl chloride monomer (VCM) production by acetylene hydrochlorination. However, poor C2H2 activation and the generation of key intermediates (*CH2═CH) have posed grand challenges for enhanced catalytic performances. Herein, we synthesized a Ni-intercalated Ru heterostructure using a lattice-strain engineering strategy, resulting in the desired electronic and chemical environments. The collaboration of Ni splits the adsorption centers of C2H2 and HCl by weakening the strong steric hindrance, and it also promotes the activation of the linear C≡C configurations. The well-controlled lattice strain enables strong d-d hybridization interactions between Ni and Ru, resulting in an upshift of the d-band center from -3.72 eV (for Ru/C) to -3.49 eV and electronic delocalization. This optimized local Ni-Ru/C structure thus enhances *H adsorption while weakening the energy barrier for generating *CH2═CH intermediates. Furthermore, the energy barrier for VCM formation was simultaneously reduced. Accordingly, the Ni-Ru/C heterostructures achieve improved performance in pilot-scale trials, with a conversion of >99.2% and stability for over 500 h. These performances significantly surpass most reported Ru-based moieties and the traditional Hg catalysts, offering a promising avenue for C2H2 activation in industrial applications.