Education
27 Jan 2025
29 January 2025 marks the Chinese New Year, but how long does China shut down during this period and what does this mean for businesses? Find out here.
The Chinese New Year is an exciting time, for both China and the world. This spring festival is set on 29 January 2025 and brings in a substantial amount of revenue to the country each year — with 2023’s festival seeing 226 million air, waterway, road, and railway passengers travelling in China during the public holiday.
But what is the Chinese New Year, how long does China shut down to celebrate this holiday, and what does the Chinese New Year mean for businesses?
The Chinese New Year marks the start of a new year on the traditional Chinese calendar. It takes place each year, lasts 15 days, and is also referred to as the Lunar New Year or Spring Festival.
Each year is associated with a different animal. There are 12 animals and this year (2025) is the Year of the Snake. The Year of the Snake is associated with wisdom, deep thinking, and resourcefulness. The Chinese New Year represents new beginnings and is celebrated with lanterns and fireworks.
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The Chinese New Year is an extremely important holiday to Chinese citizens, and in fact, is celebrated across many other neighbouring countries and throughout the world as well. Chinese citizens will get 28 January 2025 to 4 February 2025 off as part of the public holiday. Be aware that while these are the official holiday dates, manufacturing, factory and shipping businesses often face disruption in the surrounding weeks due to increased demand for products related to the New Year celebrations.
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Do you work closely with China? Are you clients or suppliers based there? If so, you may be wondering what this holiday means for businesses.
E-commerce businesses, brick and mortar stores, and retail companies who rely on Chinese production centres to deliver products to customers may experience shipping delays, backups, and delays in order fulfillment both during and surrounding the holiday season. If you do rely on Chinese suppliers, we recommend putting in orders well in advance of this period.
If you do business with China, including partaking in weekly meetings or coordinating across sales channels, you may notice reduced communication with your Chinese counterparts over this period.
Limited production could also lead to a shortage of raw materials and the essential components international businesses rely on to produce their products. If you rely on Chinese businesses to ship raw materials to your production facilities, we recommend discussing your needs with your supplier in advance.
While the Chinese New Year celebrations do signal a slow-down, the surrounding weeks can also see an increase in spending within the country as many families give gifts and purchase decorations.
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If you rely on suppliers in China, work closely with Chinese businesses, or conduct business with China’s neighbouring countries, you might like to consider taking certain steps to ensure your business activities face minimal disruption:
Speak to your suppliers early on about your upcoming needs
Place larger orders in advance
Consider discussing temporary fulfilment needs with businesses in other countries if you foresee severe delays impacting your business
Acknowledge the festive spirit by wishing your Chinese clients, suppliers and partners a great Year of the Snake.
Confirm timelines with clients and suppliers
Discuss communication plans with your Chinese partners — will all communication be halted or should you still contact in emergencies?
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Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
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