Doing Business In China with Dan PaulsonIn the US, we may take it for granted that the holidays we celebrate are also celebrated elsewhere. In China this is not so and if you’re not careful, you may find yourself in a pinch.
With the holiday season upon us, I am reminded how different cultures can be when it comes to celebrating. Seasoned travelers understand that what we celebrate here often isn’t celebrated somewhere else or vice versa. You can imagine how things change around the holidays in the US. During this time of year, retailers are in full swing. There’s a reason why Black Friday is such an important day for this industry as most of the profits earned by retailers starts just after Thanksgiving. In some industries, trying to do business this time of year is virtually impossible as business-to-business transactions come to a screeching halt.
In China, the holidays there are considerably different than they are here. The Chinese have seven holidays (see table) that are recognized nationally. During these celebrations, work in China comes almost to a complete standstill. With the exception of New Year’s, no other holiday aligns with ours here in the states. If you are doing business with China, it will be important for you to remember these dates and understand their significance.
Festival | Date | Legal Holidays | Holidays of 2010 | Holidays of 2011 |
New Year’s Day | Jan. 1 | 1 day | Jan. 1-3 | Jan1-3 |
Spring Festival (Chinese New Year) | Based on Lunar calendar | 3 days | Feb. 13-19 | Feb. 2-8 |
Qingming Festival | Apr. 4 or 5 | 1 day | Apr. 3-5 | April 3-5 |
May Day | May 1 | 1 day | May 1-3 | May 1-3 |
Dragon Boat Festival | The fifth day of the fifth lunar month | 1 day | June 14-16 | June 4-6 |
Mid-Autumn Day | August 15 according to the lunar calendar | 1 day | Sep. 22-24 | Sep 10-12 |
National Day | October 1 | 3 days | Oct 1-7 | Oct 1-7 |
In addition to the seven legal holidays, there are four other national festivals where workers may get time off, plus there could be numerous recognized local and regional events that could impact workflow.
Recently we were working with a company in the states that wanted to purchase products from China. This company is very client centered and deadline driven. While they were used to working with these tight deadlines, they had not done much business with China.
We were asked to assist them with finding a suitable manufacturer and making the contact for them. We began our process in early fall and shortly after starting work, were asked to place an order that had to be in the United States by early October. At the time the order was placed, it was approximately two weeks before National Day which is the equivalent of our Independence Day. Keep in mind the products had to be made, passed through customs, shipped, pass through customs in the U.S.A. and delivered in this time. What transpired in the coming weeks was enough to give anyone gray hair and I earned my share as different unexpected challenges popped up.
The shortened version of the story is the products, though they were made in time were tied up in shipping and customs, and ended up arriving late. Even our best efforts couldn’t control all the variables from what would be a normal workweek in China. The problems compounded themselves with the holidays. Here we have been spoiled in recent years. There was a time in our not too distant past when nothing would happen on a national holiday. You spent time with friends and family. If you needed to go to the store or get something done, too bad. In China, it is still much like that. Everybody stops to celebrate, and while early October might not be a big deal to us, it is very important to that culture.
So here’s wishing you a happy holiday season. If you are looking at expanding internationally, be sure to know that nation’s culture and what they celebrate as well. It could lead to profitable relationships for years to come!
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