The 1st of February marks the start of Chinese New Year also called Lunar New Year, and this year will be the year of the tiger. Many Chinese people travel to their families to celebrate the new year, but during the pandemic it has been more difficult and authorities are offering people money and other incentives to stay and not travel to their families, especially to and from densely populated areas. This is having an unusual impact on the global electronics supply chain.
The Chinese new year usually lasts for a few weeks and this is a long period of time to be without a supplier. The fact is that it’s not only China but many countries in Asia that celebrate the Lunar New Year, so it is best to check with your supplier if they are delivering goods or if they are shutting down.
Due to the ongoing chip shortage, some Asian companies have decided to have less time off and will be working throughout the festivities to catch up with the backlog of orders. However even though many companies will be working it doesn’t necessarily mean that deliveries won’t be delayed due to complex supply chains. It’s best to order anything coming from China well in advance to make sure of timely arrival.
Milliamp is able to manage manufacturing and work with other suppliers in Asia as well as the UK. Our experience working with suppliers in various Asian countries including Hong Kong, mainland China (Shenzhen), Taiwan and many others, means we also understand the culture of working in other parts of the world. Doing business in the electronics sector in China can be complex and you need to know how to create good “corporate guanxi” to get ahead and get a good deal which we will cover another time.
We also understand how to get the best out of overseas suppliers and the impact of global festivals such as CNY. Our good relationships with Asian companies give us access to good advice on the best course of action. If you want to know more, get in touch. We offer free guidance and can help you with any questions you may have.