In a recent LinkedIn post, Thomas Hoon discusses the critical business considerations surrounding the Chinese New Year period, offering advice for companies that rely on Chinese suppliers. Hoon, who has lived and worked in China for 13 years, emphasizes the importance of understanding and anticipating the annual slowdown that precedes and follows the holiday, a period often misunderstood by those unfamiliar with the local business rhythm.
Hoon highlights that operations with Chinese partners inevitably slow down as the holiday approaches. He advises businesses not to be alarmed by delayed responses or stalled shipments, framing it as a cultural norm akin to a major holiday in Western countries.
“Factories are closing their books. Workers are heading home. Every year many companies get caught off guard and lose valuable time due to poor planning.”
Strategic Adjustments During the Holiday Slowdown
Thomas Hoon outlines several key strategies for businesses to navigate this period effectively. He stresses the importance of adapting expectations and proactively managing relationships.
1. Managing Expectations and Payments
A primary piece of advice from Hoon is to cease pushing for expedited processes. As he notes, Chinese partners are typically occupied with financial settlements during this time. For businesses that owe money, prompt payment is recommended, while those awaiting payments should communicate with patience and clarity. Hoon argues that proactive financial management now is crucial for fostering strong, long-term supplier relationships.
2. Resetting Logistics Timelines
Hoon points out that standard shipping deadlines have likely passed, and new orders may not commence until after the Chinese New Year festivities conclude. For companies whose production cycles are dependent on Chinese suppliers, he advises planning operations for March rather than February.
“If your product depends on Chinese suppliers, plan March, not February.”
3. Cultural Respect and Communication
Understanding and respecting the cultural context is paramount, according to Hoon. He suggests that simple gestures of goodwill, such as festive greetings like “Xin Nian Kuai Le” (新年快乐) or “Gong Xi Fa Cai” (恭喜发财), can significantly impact business interactions. Hoon explains that slow responses are not indicative of rejection but are a customary part of the holiday tradition. He believes that this cultural understanding is key to building trust and mitigating potential frustrations.
“Slow responses are not rejection. They are part of the tradition. Understanding this builds trust and avoids frustration.”
Leveraging the Quiet Period for Preparation
Beyond managing immediate operational impacts, Hoon suggests that the lull in activity presents a valuable opportunity for strategic planning and organizational review. He encourages businesses to use this period wisely.
4. Proactive Planning and Review
Thomas Hoon recommends using the downtime to review supplier agreements and contracts, organize supplier lists, and prepare marketing or production campaigns for the post-holiday resumption of business. Furthermore, he suggests stress-testing inventory and production plans to identify potential weaknesses. According to Hoon, teams that engage in such preparatory activities are better positioned for a smooth and efficient restart once business operations fully resume.
“Doing business with China means understanding its rhythm: pre-holiday slowdown, public holiday, and gradual ramp-up. Anticipate it and your operations run smoothly. Ignore it and you may face delays that could have been avoided.”
Hoon concludes by prompting readers to consider their own preparedness, asking whether they are waiting for business to resume or actively preparing for the ramp-up in March. He also extends an invitation for professional connections in Guangzhou during March.
📝 About This Content
This article is based on insights shared by Thomas Hoon on LinkedIn.
📅 Originally posted on February 11, 2026 | View original post on LinkedIn →