What you need to know about Chinese New Year for your import plans from China

Chinese New Year has a significant impact on exporters because Chinese factories, ports and many other businesses in China close for the vacation. Territories with significant Chinese populations, including Macau, Taiwan, Singapore, Thailand, Indonesia, Malaysia, Mauritius and the Philippines, are also affected by the holiday; production and labor come to a standstill, which also slows international trade.

When is the Chinese New Year in 2023?
Chinese New Year will begin on January 22, 2023 and lasts approximately one week. However, it is common for companies and factories to close several days before the new year to allow workers time to travel home.

For companies that rely on exporting to China, it's something to plan for. Here are five ways you can make sure Chinese New Year celebrations don't slow down your business.

1. Incorporate Chinese New Year into your calendar.
Advance planning prevents poor performance. It's important to find out details about your members' and associates' vacation schedules as early as possible so you can plan ahead for their needs. Request as much information as you need from your customers, so you're not left wondering what's going on without an answer for a month.

Map out your business plan as far in advance as possible so you can prepare months in advance for the inevitable slowdown.

Try to find out the exact dates of the vacations so that you can create buffer periods for correspondence, bank routing and actual shipping time. Because the Chinese New Year is based on the Chinese lunar calendar, it is a little more difficult for Western companies to identify. However, approximate new years are calculated in advance and are available online.

Find out what lead times and information your associates need from you to process and ship your orders in a timely manner.

2. Know what to expect when your associates are out of the office.
Once you know when your international associates will be out of their offices, it is important to identify what you can expect from them and any of your associates with whom you may interact during the vacations. It is very likely that there will be no contact at all during the Chinese New Year.

Ask who, if anyone, will handle the correspondence during vacation time.
Physical and technical delay plan and transport delay time.
Find out who (if anyone) is providing technical or customer support, and work out an alternative arrangement for forwarding and handling calls that might otherwise be handled by a Chinese office.

3. Emphasize production in January
Don't be surprised by a disastrous turnout in the first quarter due to a lack of planning. To lessen the financial hit you could potentially take, increase production in the preceding months. This is why the planning aspect is so important. By taking stock of how much you need to book in January and February, and then spreading that amount over the previous months, your bottom line will not be affected.

On the import side, which is even more crucial to plan for during Chinese New Year, arrange to purchase supplies and products before February so that your company is well stocked while your suppliers are away. Keep in mind that you won't be able to place an order during the vacations, so plan to have enough stock to cover demand throughout February and even into March.

4. Prepare for an inevitable depression
If you are expecting orders to arrive in February, you need to be aware of production times, financing and all the various issues related to receiving and processing export orders. Remember, you probably won't get much business from China this month, which could be catastrophic if you don't anticipate it.

5. Anticipate an influx of business in January and March.
When your Chinese associates return to work, you are likely to encounter an influx of orders or support, depending on your product. If your company provides technical support, you may need to anticipate a lull in early to mid-February and a boom thereafter. Either way, plan your staff and production accordingly so you can keep up with the increased demand.

6. Make an inventory of successes and failures
During and after the Chinese New Year, be sure to take notes on what is working well and any shortcomings. With that information, you will be able to adjust and strategically plan for next year well in advance.

In 2023, Chinese New Year celebrates the year of the rabbit, which portends balance and tranquility in 2023, which is more likely to come true with proper planning for the new year. By paying special attention to the demands of the Chinese New Year, you can see that fortune come true for your February exports!
For any other inquiries you may have regarding import from China, please feel free to contact us, Guangzhou China-Latin.

Written by YEN