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The Business of the New Years

Are you ready for the year of the Horse? As one of the 12 signs of the Chinese zodiac, the horse has been said to be energetic, bright, warm-hearted and intelligent. The year of the energetic horse gallops into China today, January 31st.

fortune cookies

Chinese New Year, also known as lunar New Year, depending on the lunar calendar, can fall anytime between January and March. It is considered the biggest Chinese celebration, which also marks the end of winter. Similar to spring festivals in other parts of the world, the Chinese New Year celebration lasts for about 15 days. This means factories and businesses will be closed for a week or even more, which could be a hick up for business partners from other parts of the world who are not celebrating. If you are planning to, or are already doing business with the Chinese, chances are, you will experience this.

“I have a strong intercultural sensitivity”

This is the time when you can actually practice one of your ‘soft skills’ (although we believe it has become more than a soft skill) you’ve written down in your CV: cultural awareness and sensitivities. First of all, here are a few things you can expect during Chinese New Year (CNY) when doing business with the Chinese:
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  • A great number of factories and businesses will be closed for at least a week. Most will be closed way before the celebration begins, and reopen a couple of days after it ends. Therefore, it will take quite some time before your order is processed and delivered.
  • Even after businesses are open, it is possible that they will take their time to get back to their usual production pace.
  • It goes without saying that planning a business trip during CNY is not a smart move. Even the decision makers might be heading towards their home towns to spend CNY with their families.

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To avoid the stress and the hustle, be sure that you plan meetings, orders, and business trips accordingly. Don’t expect them to make any kind of exceptions just because you don’t have the luxury of a holiday at that time. If you usually place your orders every month, you might want to consider doubling your order a month before the celebration starts. Plan deadlines and meetings with a buffer time before and after the celebration.

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  • Expect a delay in their replies to your emails, because even if their automatic reply says they will be back at a certain date, they might be stuck somewhere, not able to get a train or plane ticket back.

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If you’ve been to China for a holiday and you already think that it was crowded, wait until you visit China during CNY. It is estimated that this year 3.6 billion people will travel to China to visit their families and friends. The streets will be busy! And we are not just talking about the usual Mondays’ traffic in the streets of Shanghai. It is actually considered being Chinas’ (some might even argue the worlds’) largest human migration season.

Rob Smith from IBM Software Group, Europe, shared his story while living in China as an expat:

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Chinese New Year was a good reason to take a holiday. As IBM-ers we were given our home country vacation allowance plus the Chinese national holidays. There is Chinese New Year and Golden Week, in September or October. In fact, there was no choice other than to take a holiday because the country just about shuts down from a business point of view. It is a bit like a week-long Christmas day in that you can still buy food and eat in some restaurants but all the local people are on holiday. If you have a maid or a driver then they will expect to be given the week off to spend with their families, and a red “hongbau” envelope containing a month’s wages.
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Before you start complaining why you have to be the one rearranging your business plans around this holiday, remember that festivities in your country are not universal either! Let us introduce you to other holidays, maybe in your country, which might have a similar impact on your international business partners. Our western traditions of celebrating Christmas are the first ones to spring to mind – it is easy to forget that the end of December is not a holiday season all across the world. The end of the Ramadan month is also another religious holiday where those celebrating it would travel back to their families and spend a whole week at home. Other spring celebrations across the world include St. Patrick’s Day in Ireland, Holi in India, the Carnival in Brazil, and Songkran Festival in Thailand. You can find more information on these festivities in our previous blog.

Knowledge is power! Once you know the cultural differences, and how they affect business plans and decisions, you can apply your soft skills from your CV to real life situations. On the occasion of the lunar new year, we offer you a 10% discount* (code: Horse2014) on our career guide book “Looking for work in China” to kick off a new start of the year like a truly energetic horse! Gong Xi Fai Cai!

*valid for the next 15 days starting 31st January.

Selene Siregar for ELM Team

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