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Writer's pictureSean Murphy

Critical Chinese Holidays During Chinese New Year (CNY)

Lanterns hang at a Chinese New Year party with people in the distance blurred

When planning to manufacture your products in China, understanding the local holiday schedule is crucial for ensuring smooth production and avoiding costly delays. After 25 years of living in China and working extensively with product design and manufacturing, I've learned that the timing of your project start can make or break your production schedule. The Chinese New Year (CNY) period is notorious for causing significant disruptions. This guide will help you navigate these challenges by highlighting the critical dates and periods you need to consider, along with my suggestions from years of experience.


The Impact of Chinese Holidays on Manufacturing

China's holiday schedule includes several key dates that can disrupt production, but none are more impactful than the Chinese New Year. Starting a project one month before or after CNY can lead to significant delays and increased costs due to workforce shortages and supply chain disruptions. I will use the Chinese New Year as one example of what to expect during holiday periods in China.


Chinese New Year (CNY)

Dates: Varies between late January and mid-February (e.g., January 29, 2025)

Duration: Typically 1-2 weeks officially, but disruptions can last up to a month before and after the official holiday.


1.⁠ ⁠Workforce Shortages

Timing: One month before and after Chinese New Year (CNY)

Impact: Employees begin leaving for their hometowns up to a month before CNY, and the return rate can be low. Many workers do not return after the holidays, leading to significant workforce shortages. This can severely disrupt production schedules and delay project timelines.


2.⁠ ⁠Supply Chain Disruptions

Timing: One month before and after CNY

Impact: The supply chain is often disrupted as suppliers and logistics companies shut down or operate at reduced capacity. This can cause delays in the delivery of raw materials and components, further impacting production timelines and increasing costs.


3.⁠ ⁠Factory Closures

Timing: Typically 1-2 weeks officially, but can extend up to a month before and after CNY

Impact: Many factories close or reduce their operations significantly during the CNY period. This leads to a halt in production, making it the worst time to start any new project. Restarting operations after the holiday can also be slow, as factories ramp up to full capacity. Some factories never re open and close permanently, it is critical to not give deposits for manufacturing before CNY.


4.⁠ ⁠Quality Control Issues

Timing: One month before and after CNY

Impact: With a rushed production schedule before the holiday and inexperienced temporary workers filling in post-holiday, quality control can suffer. This can lead to an increase in defects and substandard products, ultimately affecting your brand's reputation and customer satisfaction.


5.⁠ ⁠Increased Costs

Timing: One month before and after CNY

Impact: Due to the disruptions and shortages, the cost of production can increase significantly. Suppliers may raise prices due to limited availability, and expedited shipping costs may be necessary to meet deadlines. These added expenses can strain your budget and reduce overall profitability.


Conclusion

Starting a new design or product manufacturing project around the Chinese New Year period can lead to significant delays, increased costs, and quality control issues. To ensure a smoother manufacturing process and timely delivery of your products, it is best to plan your project milestones and production schedules outside these disruptive holiday periods.

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