Chinese New Year 2026 Business Planning

Chinese New Year remains the most significant holiday period in Mainland China, with material impact on workforce availability, supply chains and regulatory processing timelines. For 2026, businesses operating in or trading with China should begin preparation well in advance to mitigate disruption and protect operational continuity.

For foreign-invested enterprises, regional headquarters and trading companies, proactive planning is essential to manage workforce absence, production slowdowns and cash flow timing.

Understanding the Commercial Impact of Chinese New Year

Chinese New Year is not simply a public holiday. It is a nationwide migration period during which millions of employees travel to their home provinces. In many sectors, operations begin to slow one to two weeks before the official holiday and may not fully resume until several weeks after.

Key areas affected include:

• Manufacturing output

• Logistics and freight capacity

• Customs clearance processing

• Supplier responsiveness

• Government administration timelines

• On-site workforce availability

Companies that fail to plan adequately may experience delayed deliveries, contract fulfilment challenges and cash flow pressure.

Workforce Planning and Employee Management

Early Communication and Leave Coordination

Employers should confirm anticipated leave schedules with employees well in advance. Transparent communication reduces uncertainty and allows management to coordinate essential staffing levels.

Considerations include:

• Identifying critical operational roles

• Establishing minimum on-site coverage

• Arranging staggered leave where possible

• Clarifying overtime or incentive arrangements

For foreign-invested enterprises, HR teams should ensure that employment contracts, labour law compliance and payroll timing align with holiday regulations.

Retention and Post-Holiday Attrition

It is common for some employees, particularly in manufacturing or lower-tier city operations, not to return after the holiday period.

To mitigate post-holiday attrition risk:

• Confirm return-to-work commitments before the break

• Maintain regular contact during the holiday period

• Consider retention incentives

• Conduct early recruitment planning for potential gaps

Proactive workforce management protects operational stability during the first quarter of the year.

Supply Chain and Production Continuity

Production Scheduling

Manufacturers should adjust production schedules in advance of the holiday period to build sufficient inventory buffers.

Actions may include:

• Advancing production runs

• Securing raw materials earlier than usual

• Confirming supplier shutdown timelines

• Reviewing contract delivery obligations

Where overseas customers are involved, clear communication of shipping cut-off dates is essential.

Logistics and Freight Planning

Shipping capacity often tightens significantly before the holiday.

Businesses should:

• Book freight space early

• Confirm port operating schedules

• Anticipate customs clearance delays

• Monitor warehouse capacity

For companies dependent on just-in-time supply models, contingency planning is particularly important.

Financial and Tax Considerations

Chinese New Year can also affect payment cycles and regulatory timelines.

Companies should:

• Review receivables and accelerate collections where possible

• Confirm payroll processing dates

• Plan VAT and tax filings around government closures

• Ensure banking arrangements are operational during reduced staffing periods

Foreign-invested enterprises should coordinate closely with accounting teams to ensure compliance obligations are not inadvertently missed due to holiday closures.

Business Continuity and Risk Management

Cross-Regional Coordination

Companies with operations across multiple cities should align planning across branches and subsidiaries.

For example:

• Confirm branch office staffing levels

• Review business scope compliance if new activities are planned

• Coordinate with local authorities where licences or renewals are pending

Regional misalignment can create unnecessary operational risk.

Digital and Remote Infrastructure

Ensuring secure remote access to accounting systems, banking platforms and operational dashboards allows management oversight even during reduced physical presence.

Cybersecurity protocols should also be reviewed, as holiday periods can present elevated fraud risk, particularly relating to payment authorisations.

Strategic Opportunity Within the Holiday Cycle

While the Chinese New Year period presents operational challenges, it also offers strategic advantages.

For some businesses, the slowdown provides an opportunity to:

• Conduct internal audits

• Review compliance documentation

• Implement system upgrades

• Plan restructuring or expansion initiatives

Well-prepared organisations use the holiday cycle as a structured planning milestone rather than viewing it solely as disruption.

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