The Great Shutdown: What Happens in Chinese Factories During Chinese New Year?

For businesses that import from China, there is no single event more disruptive than Chinese New Year (CNY). It's not just a one-day holiday; it's a nationwide shutdown that can paralyze your supply chain for over a month if you're unprepared. Understanding what actually happens during this period is the key to protecting your business from massive delays and production issues.

At Befach.com, we help our clients navigate the CNY disruption every year. It's a predictable chaos, and with the right planning, it can be managed. This guide will give you an insider's look at what goes on inside Chinese factories during this critical time.

It's More Than a Holiday—It's a Mass Migration

Chinese New Year is the most important festival in China, a time for family reunions. Millions of factory workers travel from industrial cities back to their rural hometowns. This results in a near-total shutdown of the country's manufacturing and logistics infrastructure.

The CNY Disruption Timeline:

• 2-3 Weeks Before CNY: The "mad rush" begins. Factories rush to finish orders, often leading to a drop in quality control. Shipping ports become incredibly congested, and freight costs skyrocket as everyone tries to ship goods out before the holiday.
• The Official Holiday Week: Everything stops. Factories are closed. Production is zero. You will likely have no communication with your supplier.
• 2-3 Weeks After CNY: The slow ramp-up. Factories don't just switch back on overnight. Workers trickle back slowly. A significant percentage (up to 30%) may not return to their old jobs at all, leading to high employee turnover.

The Post-CNY Risks Every Importer Faces

The disruption doesn't end when the holiday is over. The weeks *after* CNY can be just as risky.

• Quality Fade: With new, inexperienced workers on the production line, there is a much higher risk of quality issues and defects in the first batches of products.
• Production Delays: Factories are dealing with a huge backlog of orders and are not yet operating at full capacity. Your order will likely be delayed.
• Supplier "Ghosting": Sometimes, your trusted sales contact may be one of the employees who didn't return, leaving you to start building a relationship all over again.

How to Plan for CNY and Protect Your Business

The key to surviving CNY is to plan far, far in advance.

1. Know the Dates: CNY is a lunar holiday, so the date changes every year. Mark it on your calendar 6 months in advance.
2. Place Orders Early: Place your pre-CNY orders by November at the latest to ensure they are completed and shipped well before the rush.
3. Build Buffer Stock: Order enough inventory to last you through the entire disruption period (January to March).
4. Avoid Shipping in the Rush: Don't try to ship goods in the two weeks before CNY. It's expensive and risky.
5. Be Patient Post-CNY: Don't place a complex or urgent order immediately after the holiday. Allow factories time to get back up to speed.

The Befach Advantage: Your Strategic CNY Partner

Navigating this period is a strategic challenge. This is where an expert partner becomes invaluable.

• Our sourcing team works with you to create a production schedule that accounts for the CNY shutdown, ensuring your orders are placed with reliable suppliers who manage the holiday well.
• Our logistics experts book freight capacity far in advance, protecting you from price hikes and space shortages.
• Our customs clearance team ensures that any shipments arriving before or after the break are processed efficiently.

Don't Let CNY Derail Your Business

Chinese New Year doesn't have to be a crisis. With foresight and a strong partner, it can be just another manageable part of the import calendar.

Ready to build a supply chain that's resilient to the CNY shutdown? Contact Befach today to start planning for next year.