How Chinese Holidays Impact Global Business

Apr 28, 2022

Chinese Holidays and How They Impact Global Business

Although holidays around the world vary, they are an important part of cultures and traditions that have developed through time. Within countries, there is a cross-section of holidays that are celebrated nationally, internationally, and within diverse groups. Here in the United States, we have days such as National Poetry Day and National Grilled Cheese Day that are fun, but the government does not recognize these as federal holidays. Many federal holidays are observed by allowing days off of school and work. This practice of observing certain holidays also happens in China.

For people collaborating with companies in China, it is important to know the observed holidays. It is also important to understand how these holidays get recognized. When it comes to the supply chain, it will be important to know and plan around these holidays because they will impact global commerce in a variety of ways. Many holidays will mean that facilities close. People will also not be available for work.

Source: dragontrail.com

International Workers Day

International Workers Day (Labor Day) is observed on May 1 in China and other countries. As of 2019, Labor Day in China allows people to have 3 days off as regulated for the federal holiday. Many workers, however, take off extra time that has to be “made up.” Having 3-5 days of closed China-based facilities can drastically impact production and shipping times. If these days do not get accounted for, there will be delays and costly consequences.

Qingming Festival

According to one source, the Qingming Festival is the 3rd most important traditional Chinese holiday. Qingming, also called Tomb-Sweeping Day is Chinese Memorial Day. Qingming falls 15 days after Spring Equinox. Despite this holiday currently having no official status, it is taken seriously and practiced widely in Southeast Asian countries, including China. The interruption is less than other holidays, but there are still delays that impact the manufacturing and sourcing needs of global businesses.


Chinese New Year

Chinese New Year is likely the most internationally known Chinese holiday as Chinese people celebrate it widely. This holiday is also the most meaningful Chinese holiday to worldwide commerce. Manufacturing, along with most China-based businesses will close their doors for around 3 weeks. In 2015, approximately 80 million workers traveled from cities to their homes in rural areas during the Chinese New Year. People officially celebrate Chinese New Year for 10 days but many Chinese businesses allow workers to leave early for travel. This causes a sprint to the finish line for shipping and productions for businesses that need to stay on tight schedules. Because this can cause expedited shipping needs, costs will be higher, and delays will be inevitable if not carefully planned.

Advanced planning is imperative for businesses that source goods and services in China. Without planning, your goods could have massive and expensive delays that could shatter your business goals. Having proper quality management and great relationships with your supplier is also important. Global Manufacturing Sales is here to be your boots-on-the-ground resource to help you navigate through all things China-based manufacturing and sourcing. There are huge benefits to working with China-based sourcing agents and manufacturers.

Contact us or request to quote to learn more!



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