Chinese New Year and Its Impact on the Global Supply Chain

Historical Background

The Chinese New Year has a history of over 4000 years and was originally a harvest festival to celebrate the end of winter and the beginning of spring. Later, myths and legends were integrated into the celebrations: A well-known legend tells of the monster Nian, who haunted the villages every year on New Year's Day. The villagers discovered that Nian was afraid of red things, noise and fire. This gave rise to the custom of decorating houses with red decorations, setting off fireworks and celebrating loudly to drive the monster away.

The festival is officially celebrated on the first day of the new year in the Chinese lunar calendar. This calendar is based on the lunar cycles and differs from the Gregorian calendar, so the date varies each year, but is usually between 21 January and 20 February.

Preparation Days

Before New Year's Day, families clean their homes thoroughly to drive away bad luck and negative energies and make room for the new year. The decoration of the houses with red lanterns, scrolls and ornaments symbolises good luck and prosperity.

Family Reunion

New Year is the most important time for family gatherings. Millions of people travel to their hometowns every year - often over long distances - to celebrate with their families.

Banquet

The meal on the eve of the New Year is rich in symbolism. Traditional dishes such as jiaozi (dumplings), fish and rice dishes take centre stage. Each component of the menu has a positive meaning, such as wealth, longevity or fertility.

Red Envelopes (Hongbao)

Children and unmarried adults receive red envelopes filled with money. These are said to bring luck and prosperity for the coming year.

Fireworks and Lion Dances

The New Year celebrations are accompanied by fireworks and lion dances to drive away evil spirits. These spectacular performances are not only a cultural tradition, but also an expression of joy and hope.

The Year of The Animal

Each Lunar New Year is assigned to an animal from the Chinese zodiac, e.g. the dragon, monkey or rabbit. Each animal symbolises certain characteristics and influences the cultural perception of the new year.

Production Downtime

During the festivities, which often last two weeks or longer, many factories in China stop working. Some companies start to reduce their production weeks in advance, which can lead to delays in the supply chain.

Massive Increase in Shipping Volumes

Shipping volumes increase significantly in the weeks leading up to the New Year, as companies want to finalise their orders before the holidays. This leads to increased freight costs and longer processing times.

Labour Shortage

Many workers travel to their families, who often live far away, before the New Year celebrations, meaning that production is shut down before the actual festivities. After the New Year celebrations, many workers do not return to work immediately, which can slow down the resumption of production.

Planning is Cruical

Companies that rely on Chinese suppliers should plan early and bring forward their orders to avoid bottlenecks. Well thought-out supply chain management is crucial at this time.

Chinese New Year

This term refers specifically to the New Year celebrations in China and the traditions associated with them. It is also known as the Spring Festival and marks the beginning of a new year in the Chinese zodiac.

Lunar New Year

This is a more general term that refers to New Year celebrations that take place according to the lunar calendar. In addition to China, other Asian countries such as Vietnam (Tết), Korea (Seollal) and Mongolia also celebrate the Lunar New Year, each with their own traditions and customs.