The effects of this celebration, however, go well beyond China and its citizens. Chinese New Year has a significant impact on global production and trade, which is felt all over the world. This article will examine the effects of the Chinese New Year on worldwide trade and production, as well as what firms may do to lessen such effects.
The shutdowns compel a lot of businesses who depend on Chinese suppliers for raw materials or completed goods to change their production plans. In order to prevent any inconveniences, several businesses decide to raise their production levels in the months before the holiday. Others could have to buy products from several vendors, which would raise their costs and lengthen their delivery times.