How U.S. Companies Should Prepare for Chinese New Year

It’s January, you’re probably thinking about Q1 timelines, new products, and this new year's plans. But what you might not be thinking about is a shutdown halfway around the world that could stall your entire production schedule: Chinese New Year.

by

Everett Frank

December 16, 2025
5

If you're not a supply chain pro, Chinese New Year (CNY) might seem like just another international holiday. But if you’re ordering printed circuit boards, plastic enclosures, cables, or pretty much anything made in Asia, it’s a disruption that can wreck your schedule. Don’t panic, you just need a basic understanding of what’s coming and how to prepare. Here’s what you need to know.

What is Chinese New Year, and why does it matter to you?

Chinese New Year, also called Spring Festival, is not just one day off. It’s the biggest holiday of the year across China and many other Asian countries, and it shuts down factories, ports, and production lines for weeks. CNY 2026 runs from Tuesday, February 17 to Tuesday, March 3, but the disruption begins earlier and lasts longer.

It’s one of China’s “Golden Weeks”

Officially, China takes a week off. Unofficially, many factories shut down a week before and don’t resume production for another two or three weeks. That’s because it’s more than a holiday, it’s a national migration. Over 400 million people travel across the country to reunite with family. Trains and planes are jammed. It’s the largest annual human migration on Earth.

The factory floor goes quiet

Factory workers often travel thousands of miles home. Many don’t return to the same job. Some take time off and don’t come back. This creates a slow restart — hiring, training, ramping up — which delays meaningful production.

Cultural traditions matter

CNY is rooted in deep tradition. Workers receive red envelopes (hongbao) filled with money as a sign of good luck. If you have a close relationship with your suppliers or CM, it’s appropriate (and appreciated) to send best wishes and even a small hongbao.

Here’s What Happens:

Workers leave early. 400 Million travel home. Trains, buses, and flights are packed.

Factories shut down ahead of schedule. Most wind down by February 10.

Production takes time to restart. Factories may open on March 3, but full staffing often doesn’t return until mid-March.

Red envelopes (hongbao) with cash are exchanged to wish prosperity. A quick note to your suppliers during the holiday is more than polite. It helps maintain relationships.

How the shutdown hits U.S. manufacturing

Even if your parts don’t come from China, you’re still affected. Most of Asia observes similar shutdowns. And electronics components, PCBs, cables, plastics, and packaging are either made in this region or rely on parts that are.

The issue isn’t just the factory closure. It’s the timing stack-up.

Understand the shutdown window

In 2026, the official CNY is Feb 17–Mar 3. But smart teams assume:

  • Shutdown begins: Feb 10

  • Production resumes: Mar 10

If you have an 8-week lead time, here’s how it plays out:

A timing example

Let’s say you order 1000 units per month with an 8-week lead time. Normally, you’d order in early December to get your February 1 shipment.

The simple action to account for CNY:

  • Feb 1 shipment needs to cover February and March (2000 units)

  • Place that order by Dec 1

Where most teams get caught is what happens after the shutdown. Production might resume Mar 10, but shipments won’t resume until May 10 (8 weeks later).

The savvy action to account for CNY:

  • Order by Dec 1 for Feb, Mar, Apr, and May shipments

  • That’s 4000 units received by Feb 1

It feels early, because it is. But that’s what it takes to stay on track.

Categories most at risk

Some parts and materials are especially exposed:

Printed Circuit Boards

Nearly all PCBs are made in China. Plan your builds ahead. Even if your fab says they’re open, assume delays.

Plastics and Packaging

Injection molded plastics and custom packaging often come from Asia. These are often finalized late, but they can hold up your entire shipment.

Cables and Wire Harnesses

Final assembly might be local, but the components are not. Lead times are long already and CNY adds more delay.

Electronic Components

Even if a chip supplier isn’t in China, CNY can still disrupt them. Warehouses, subcontractors, and partners shut down across Taiwan, Malaysia, Vietnam, and Korea.

Your CNY checklist

To stay ahead:

  1. Find out when CNY starts and pad 1 week before and 2 weeks after

  2. Check your lead times they may stretch further

  3. Forecast your needs through May not just February

  4. Place orders by early January especially for custom or long-lead parts

  5. Talk to your vendors confirm their actual CNY plans

Cofactr Can Help You See the Risks

Planning for CNY isn’t just about ordering early. It’s about seeing the risk before it hits you. At Cofactr, our tools let you:

  • Visualize part lead times and constraints
  • Track inventory by weeks on hand
  • Plan buys to avoid seasonal shutdowns

Whether you're managing one part or a BOM with 500 lines, Cofactr makes it obvious what needs attention.Not sure where your parts are coming from? Cofactr helps with that too.

Ready to let Cofactr handle sourcing, negotiations, storage, kitting, and delivery while your team focuses on building products? It’s free to get started with Cofactr today.

Frequently Asked Questions

How to prepare my production schedule for Chinese New Year?
Plan for factories shutting down a week early and restarting slowly. Forecast needs through May, pad timelines, and place orders by early January to avoid shortages.

What is Chinese New Year and why does it affect manufacturing?
Chinese New Year is a multi-week shutdown across Asia. Workers travel home, factories close, and production restarts slowly, creating global delays that impact U.S. supply chains.

Why does production take weeks to recover after the holiday?
Many workers don’t return immediately, some never return, and factories must rehire and retrain. This causes slow ramp-ups, pushing meaningful production into mid-March or later.

Can I avoid delays by choosing suppliers outside China?
Not entirely. Many neighboring countries observe similar shutdowns, and electronics, plastics, and packaging still depend heavily on components originating in Asia.

Best way to avoid running out of inventory during CNY?
Forecast through May, consolidate expected demand into early orders, confirm vendor shutdown plans, and increase buffer stock so February and March shipments fully cover extended downtime.

Where to find accurate shutdown dates for supplier operations?
Ask each supplier directly. While official dates exist, factories often close earlier and reopen later, so vendor-specific schedules give the clearest view of operational impact.

Who is most affected by CNY shutdowns in hardware production?
Teams relying on PCBs, plastics, cables, and electronic components face the highest risk, since these parts overwhelmingly originate in Asian factories operating on CNY schedules.

When does Chinese New Year 2026 occur, and when do disruptions begin?
CNY 2026 runs February 17–March 3, though slowdowns typically begin around February 10 and meaningful production often doesn’t resume until mid-March.

Is it necessary to send greetings or hongbao to suppliers?
It’s not mandatory but appreciated. Sending well-wishes or a modest hongbao strengthens relationships and aligns with cultural traditions valued during the holiday season.

Do I need to adjust my purchasing strategy for long-lead items?
Yes. Long-lead parts like PCBs, cables, and plastics need earlier ordering. Lead times often stretch further around CNY, making January purchasing critical for staying on schedule.

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