The Chinese New Year is not only the largest holiday in China but also a period that significantly impacts global manufacturing and supply chains.

Chinese New Year, also known as the Lunar New Year, is the most important holiday in China, profoundly affecting not only the lives of its people but also industrial production. Unlike the Western New Year with a fixed date of January 1st, this holiday follows the lunar calendar and is celebrated anytime between January 21st and February 21st. The official holiday lasts seven days, but the actual impact on production and logistics can be much longer, often extending up to 40 days.

During this time, China focuses on family gatherings, celebrations, and rest. For many workers, particularly migrant laborers, this is the only opportunity throughout the year to visit their families, often living in distant provinces. For this reason, workers start leaving factories several weeks before the official start of the holiday, gradually slowing down production.

Factories try to prevent production disruptions by often speeding up manufacturing to fulfill orders before the holiday. However, this pressure can lead to errors and a decrease in product quality, which is a risk that companies must carefully consider. Once the holidays begin, factories shut down completely, and production comes to a halt. During this time, no shipments leave China, and supply chains slow down significantly.

Another factor companies must take into account is the unavailability of workers during the holiday. Not only does production stop, but communication also ceases. Managers, workers, and logistics teams are unavailable, making it difficult to solve problems and disrupting the flow of information. For global companies that rely on Chinese factories, this means they must plan well in advance and be prepared for delays in deliveries.

The situation does not immediately return to normal after the holidays. It often happens that some workers, particularly those from rural areas, decide not to return to factories and remain in their home provinces. This loss of experienced workers forces factories to hire new, less experienced labor, which can lead to further delays and a reduction in production quality.

For companies that depend on Chinese supply chains, it is crucial to place orders well in advance of the Chinese New Year. Rushed orders right before the holiday can be risky, as production may not be completed in time, or the final products may not meet the expected quality.

The Chinese New Year is not only an important cultural celebration but also a critical period that affects global trade. Planning and preparation are essential for companies relying on Chinese manufacturing to minimize disruptions and risks during this challenging time.