Business Implication for Chinese New Year Period
February 08 2017
Chinese New Year (CNY), also known as the Spring Festival, is the most important and celebrated festival in the calendar for Mainland China. The date of the festival is determined by the Chinese lunar calendar, and thus normally falls in late January or early February.
In 2017 Chinese New Year falls on the 28th of January with the official public holiday starting on the 27th of January and ending on the 2nd of February which is published by The State Council of the People’s Republic of China. Thus begins the transition from the Year of the Monkey to the Year of the Rooster.
Even though the official public holiday period only lasts a week, the preparation, holiday atmosphere and the extended celebrations can last for almost a month, starting two weeks before CNY.
Almost every local business and company will close during this period. Corporations, factories, logistics, banks, assemblers are shut down completely. This is especially apparent in tier 1 cities - Beijing, Shanghai, Shenzhen, Guangzhou. Businesses commonly close early to allow employees to travel across China to be with their families for the Chinese New Year period.
Impact on business
Business in China typically slows down in the week leading up to Chinese New Year.
In terms of the impact on Australian companies doing business with China, there are a few things to be aware of:
- Ensure your shipment arrives in China two weeks before CNY to ensure it is not held up during the holidays
- Try to avoid placing orders during the one month closure
- Avoid trying to settle a contract or negotiation around this period
- Try not to make deposit payments prior to CNY as manufacturing will not resume until after the holiday period
There will always be a handful of agents, manufacturers and businesses’ claiming to be open during CNY, but this is generally untrue.
Our China team here in Sydney will operate as usual in Australia.
Despite the CNY slowing impact on business activities in China, our team can assist with market intelligence, price search, due diligence, relevant communication and negotiation during the shutdown period.
If have any questions or would like assistance when doing business with China, please contact us on 1800 505 529 or via email firstname.lastname@example.org