CNY 2024: Navigating the China Factory Shutdown

In the heart of the world’s most populous nation, the Chinese New Year, or CNY, is more than just a festival; it’s a seismic event that can rattle the global supply chain. As we delve into the complexities of this annual celebration, we’ll uncover the ripple effects it has on China’s factory operations and how you can deftly manage import and export hurdles during this tumultuous time.

1) Schedule of Chinese New Year Holiday

The CNY frenzy kicks off on February 1st, marking the beginning of a two-week Lunar New Year celebration. Factory workers exit their posts approximately 5-10 days before CNY, embracing this time to reunite with loved ones. Here’s the CNY 2024 timeline at a glance:

• 24th January: Manufacturers initiate production stoppage, leading to a decline in output.
• 5th February: Assembly line workers prepare to leave factories.
• 8th February: All Chinese factory workers depart, and the supply chain grinds to a halt.
• 10th February: The official start of the Chinese New Year holiday.
• 25th February: Workers return, and the wheels of manufacturing start turning again.
• 10th March: All manufacturing projects regain their usual rhythm.

2) Which Countries Will Spend Lunar New Year at the Same Time?

China isn’t the only nation caught up in the Lunar New Year fervor. Several Asian countries synchronize their holidays, resulting in a harmonious yet disruptive shutdown. These include:

• Vietnam: “Tết,” their Lunar New Year, aligns with China’s holiday.
• South Korea: “Seollal” prompts rural factory workers to embrace public holidays.
• Malaysia: They observe Thnee Kong Sei and Pai Thnee Kong during the Lunar New Year.

3) Effects of China Factory Shutdown

The repercussions are profound:

1. Increase in Shipping Costs: Early worker departures inflate shipping charges.
   • Factories charge premium wages in the final days.
   • CNY disrupts manufacturing relationships, causing shipment delays.
2. Limited Chinese Factory Workers: A mass exodus of workers results in a labor shortage.
   • Finding skilled labor becomes an arduous task.
   • Worker turnover rate spikes, with many seeking extended leave to reunite with family.
3. Quality Issues: Skilled workers paying less attention to orders during the holiday.
   • Key engineers leave, causing quality control problems.
   • New workers complicate quality assurance before and after the CNY.
4. Logistic Difficulties During CNY: China’s vast transportation system faces strain.
   • Travel restrictions due to COVID-19 exacerbate challenges.
   • Labor scarcity disrupts loading and unloading, impacting shipments.

4) Best 4 Steps to Manage Your Business During CNY

Navigating the CNY chaos requires a strategic approach:

1. Make Your Plan: Boost inventory levels before the holiday. Secure orders that ship pre-CNY.
   • Request extended worker hours.
   • Plan pre and post-CNY to ensure smooth operations.
2. Concern With Your Agent To Manage Quality Issues: Prioritize quality inspections during production.
   • Monitor manufacturing components closely.
   • Implement rigorous quality management.
3. Business with Trusted Suppliers: Avoid new, inexperienced suppliers during the holiday.
   • Be cautious as workers switch jobs for higher wages.
   • Trust established suppliers for reliable quality.
4. Take Third-Party Assistance: Leverage third-party experts with strong manufacturer connections for robust inspection plans.

5) FAQs

Q1: How Long Will Business Close during CNY 2022? Official holidays are from 1st to 7th February, but it can take over 10 days for manufacturing to fully resume.

Q2: Can the Chinese New Year 2022 Affect Your Business? Manufacturers may halt production in mid-January. It can take up to a month to return to normal production speed.

Q3: Will China Ship during Chinese New Year 2022? China’s shipment remains open, but labor shortages may affect capacity. Plan for advance arrangements.

Q4: Will AliExpress Shutdown During Chinese New Year? AliExpress won’t shut down, but expect some shipment delays from suppliers during the CNY holiday.

Q5: How to Find Reliable Chinese Suppliers? Consult with the best China sourcing agent to connect with trusted factories, ensure competitive prices, quality control, and timely delivery.

Final Thoughts

The Chinese New Year is a bustling, vibrant time in China, but its impact reverberates globally. By taking proactive measures and planning ahead, you can mitigate delays and maintain product quality. Keep your stocks well-stocked, ensuring a smooth supply chain that won’t falter during the CNY shutdowns or factory closures.