Permanent link for What Is Country of Origin? The Ever-Changing Puzzle of Definitions on June 20, 2023

Country of origin is one of the more confusing concepts to master in conducting international trade or even applying to U.S. domestic business activities. There are three crucial pieces of data that must be managed for compliance purposes in international trade - customs value, Harmonized System (HS) classification, and country of origin. Customs value which determines the amount of duty and taxes to be paid on imported goods is based on a global standard known as the "Valuation Agreement", a treaty administered by the World Trade Organization. HS classification is a standardized system for the classification of goods adopted by almost every country in the world. Country of origin, conversely, is subject to no global standard. There are many authorities and governing bodies (called jurisdictions) that are crafting specific rules of origin which meet the specific objectives and purposes of that jurisdiction.

Before making country of origin too complicated or confusing, there is a universally accepted basic concept of country of origin which should be the default definition until some entity decides to redefine it. In international trade, "country of origin" refers to the country where a product was grown, produced, or manufactured. For raw materials and commodities, this means it wholly originated in a country. For manufactured goods, the country of origin is typically determined by the place where the product underwent its last substantial transformation, meaning the point at which it was transformed into a new and distinct article from the raw material or components used in the production of the goods. This general definition of country of origin should be the default definition in international trade, both import and export, until some authority re-defines it.

Here are the most common jurisdictions (primarily in the United States) of country-of-origin definition to be aware of.  These authorities have established specific definitions of "country of origin" for various purposes:

1. Importing into the United States: U.S. Customs and Border Protection (CBP) is responsible for enforcing trade regulations at U.S. ports of entry. The CBP uses a specific set of rules to determine the country of origin for imported goods, known as the "Marking of Country of Origin of Imported Merchandise" regulations, utilized for declaration requirements on all U.S. customs entries and the country of origin marking of goods. These regulations define the country of origin as the product’s country of last substantial transformation, following the basic default definition for country of origin.
2. Exporting from the United States: When U.S. exporters are completing export documents and export declarations for international shipments, they should still declare the country of origin, as required on the export commercial invoice and export declaration, utilizing the same basic default definition of country of origin – the country it was manufactured in or substantially transformed in – until another jurisdiction of country of origin supersedes that definition. Technically, every country of destination is a different jurisdiction that can define country of origin for their purposes. Still, U.S. exporters should stick to the general definition unless instructed otherwise by their foreign customers.
3. United States-Mexico-Canada Agreement (USMCA): The USMCA is a free trade agreement between the United States, Mexico, and Canada. The USMCA includes specific rules of origin that determine whether a product qualifies for preferential tariff treatment under the agreement. The specific rules of origin written into the agreement require the use of tariff shift and regional value content as the defining rules determining qualification as an originating good from the parties to the agreement.
4. All other U.S., and most other international free trade agreements: Each FTA agreement will have specific rules of origin written in the same manner as the USMCA agreement.
5. Federal Trade Commission (FTC): The FTC issues its own set of country-of-origin rules for the use of “Made in the USA" in the United States. U.S. manufacturers are not required to mark or identify U.S.-made products on product labels are in advertising material, but if they do, it must meet a strict set of FTC rules. If a U.S. business makes a claim of “Made in the U.S.” the FTC considers the statement to be an unqualified claim or origin and sets the standard that it must be “all or substantially all” made in the U.S. – loosely quantified as 80% or more.  If not, then a qualified claim is required. Qualified claims must include phrases like "Made in the USA with imported parts" or “Assembled in the U.S. with U.S. and foreign components”. The FTC's objective is to ensure that consumers are not misled about the domestic and foreign content of the products they purchase.
6. U.S. Department of Agriculture (USDA): The USDA has specific regulations regarding the labeling of agricultural products, including country of origin labeling (COOL) requirements. Under these regulations, certain food products must be labeled with their country of origin, including beef, pork, lamb, chicken, and goat meat, as well as perishable agricultural commodities such as fruits and vegetables.
7. Buy American Act: The Buy American Act is a federal law that requires that certain federal government purchases of goods and materials be made from domestic sources unless an exception applies. Under the Buy American Act, a product is considered to be of domestic origin if it is manufactured in the United States, and at least 50% of the cost of the components of the product is attributable to materials mined, produced, or manufactured in the United States.
8. Michigan State Trade Expansion Program (STEP): The Michigan STEP program is a state-run program that provides grants to small businesses in Michigan to help them expand their exports. The program includes specific rules regarding the country of origin of the exported products. To be eligible for the program, a product must be manufactured in Michigan and at least 51% of the value of the product must be attributable to materials and labor costs in Michigan.

Mastering the intricate concept of country of origin in international trade, as well as its application to U.S. domestic business activities, can be a perplexing endeavor. The definition of country of origin lacks a universal consensus, allowing jurisdictions to mold it to their specific objectives. However, before succumbing to overwhelming complexity, it is crucial to recognize the universally accepted basic concept of country of origin—a default definition that refers to the country where a product was grown, produced, or manufactured. This general definition should serve as a starting point in international trade until an authoritative entity redefines it. By familiarizing ourselves with the various jurisdictions and governing bodies involved, such as U.S. Customs and Border Protection, the United States-Mexico-Canada Agreement (USMCA), and the Federal Trade Commission, we can navigate the labyrinthine landscape of country of origin with confidence and compliance. Whether importing or exporting, it is vital to adhere to the prevailing definitions while remaining open to the ever-evolving dynamics of international trade.

Are you interested in learning more about Country of Origin?  Since 1999, GVSU's Van Andel Global Trade Center (VAGTC) has been helping Michigan businesses succeed globally through import and export training and consulting. Whether you are thinking about opening a new market, figuring out customs compliance and international regulations, or looking for overseas suppliers to complement your global supply chain, Van Andel Global Trade Center can help.  Contact us today!

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About the Contributor:

Mark Bleckley is the Associate Director at GVSU’s Van Andel Global Trade Center. He is a licensed customs broker and has been involved in global trade for over 30 years. He has managed all aspects of import and export operations, including transportation and logistics, customs clearance, export documentation, recordkeeping, compliance and management of Harmonized Tariff Schedule and country of origin determination and management, as well as, analyzing free trade agreements for maximum benefit.

Categories: Country of Origin
Posted on Permanent link for What Is Country of Origin? The Ever-Changing Puzzle of Definitions on June 20, 2023.

Permanent link for Gains & Guidance in Germany on May 8, 2023

            Germany has one of the most successful economies in the world, ranking fourth globally in GDP. This is largely due to its reliable infrastructure and workforce, as well as its positive social and legal climate. Germany has a wealth of scientific and technological research with firm practical applications. 

            Efficient transportation networks and high nationwide competence in English make Germany an accessible location to foster business partnerships. In addition, impressive import-export statistics state that Germany is “the second largest importer and third largest exporter of consumer oriented agricultural products worldwide, and by far the most important European market for foreign producers.”

However, there are a few hurdles foreign companies may face. Because Germany has such a successful economy and leads most of Europe in trade, it reserves the right to be choosy with whom forms meaningful partnerships. This means that companies must go through long bureaucratic processes when setting up shop in the country. However, these “drawbacks” simply mean that the chance to trade with German companies should be regarded as a high accomplishment. 

            German business etiquette is more formal than other trade relationships may be. Success in the business world of Germany relies on these key components:

• Punctuality: German partners expect punctuality, including setting meetings well ahead and arriving on time and prepared. 
• Formality: Foreign partners are expected to maintain a high level of formality, including using titles and steering clear of controversial or personal topics. Partners should allow the German party to initiate more casual conversations. Additionally, while many German people are proficient in English, it’s considered a thoughtful gesture to translate documents into German.
• Detail: German business partners appreciate organization. According to Wolters Kluwer,  “The German mindset values detail, order, and structure. Expect to examine each aspect of a project in detail with your contacts.”

Interested in learning more?  Join us on May 24th for a virtual Business Travelers Series session on Navigating Germany! We will cover how-tos and best practices for doing business in the German market, as well as, how to maneuver through cultural nuances business professionals often face while working with or traveling to Germany. This event is generously sponsored by The Gerald R.Ford International Airport  and  Michigan Economic Development Corporation (MEDC).

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About the Contributor

Parker Mackey is a Student Assistant at GVSU’s Van Andel Global Trade Center . They are a 2nd-year junior pursuing a Bachelor of Fine Arts in Studio Arts, emphasis painting. They also work for GVSU’s History Department, transcribing for the Library of Congress’s Veterans History Project . They enjoy painting, hiking, and listening to folk punk.

Categories: Culture Germany
Posted on Permanent link for Gains & Guidance in Germany on May 8, 2023.

Permanent link for Updates on Forced Labor Provisions in 2023 on April 17, 2023

Forced labor has been a huge issue that U.S. Customs and other government agencies have been attempting to crack down on as of late 2021, the majority of 2022, and continued efforts going into 2023.

By the Congressional Research Service definition, forced labor is considered to be “all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.”

Introduction to Section 307

Section 307 under the Tariff Act of 1930 prohibits the importation of any products that were created using forced labor.

Here is how Section 307 was put into effect:

1. Receipt of allegation or self-initiation
2. CBP Commissioner initiated CBP an investigation.
3. CBP Commissioner issues a Withhold Release Order (WRO)
4. Importer may export merchandise or contest the WRO
5. Any final readings are published in the Federal Register
6. CBP seizes non exported merchandise and commences forfeiture proceedings

Reporting Standards

With these actions in mind, reports that are made to the Commissioner of U.S. Customs and Border Protection (CBP) cannot be unwarranted; there are certain standards for reporting that must be met.

These standards include “any individual that has reason to believe that any class of merchandise that is being, or is likely to be, imported into the United States is being produced by Forced Labor” have a valid argument to file a claim. In accordance with 19 CFR 12.42, Port Directors and other Principal Customs Officers are mandated reporters and if someone not in this role has concerns, they may share with the Port Director or online.

Investigation Standards

Investigations regarding these reports under Section 307 also have a set of standards laid out.

These include statements regarding how an investigation is initiated “as appears warranted by the amount and reliability of the submitted information” and a Commissioner of CBP must find that the information “reasonably but not conclusively indicates that imports may be the product of forced labor” to release a WRO to the related items.

Contesting a WRO

If a company has the unfortunate luck of receiving a WRO, not all is lost– it is possible to contest a WRO with a set of procedures that were posted by the Congressional Research Service.

Here are the general guidelines for contesting a WRO:

1. Importer has three months to contest the WRO
2. The importer must demonstrate that “every reasonable effort” was made to show the source and type of labor used to produce an item and its parts.
3. If WRO is not successfully contested or is not exported from the US, CBP will seize and destroy the afflicted items 
4. CBP will then publish the date, type of merchandise, manufacturer, and status of WRO
   1. However, CBP will not post specific detentions, re-exportations, exclusions, or seizures

Forced Labor Enforcement Advancements

Though Section 307 has been around for a number of years now, advancements in the area of forced labor enforcement have increased as of recently.

During January 2022, U.S. Trade Representative (USTR) announced the development of “first-ever focused trade strategy to combat forced labor.”

This plan entails a series of partnerships of government organizations with non-government organizations (NGO’s) and civil society organizations (CSO’s).

More specifically, the Department of Homeland Security (DCS), with the aid of the NGO’s and CSO’s, will also launch supply chain criminal investigations– the first ever of its kind. The main purpose of these criminal investigations is to help identify and shut down human trafficking efforts, charge those who are directly responsible, and protect the victims of these acts.

External Applications - Combating Illegal Fishing

Surprisingly, a big sector with ongoing forced labor issues has been the live fishing industry.

A new presidential directive has led to search and investigation of fishery supply chains that are suspected of using forced labor and contributing to human trafficking in response to this growing issue.

As permitted by the new directive U.S. Customs & Border Protection are instructed to:

1. Investigate fishing vessels and operators suspected to be harvesting seafood with forced labor and issue a withhold release orders (WRO)
2. Share evidence with allies and partners to encourage parallel customs enforcement actions.
3. Investigate prospective civil penalties cases against importers connected to previously issued fishing vessel WROs.

This is quite a daunting task for the CBP to do alone, so they have enlisted the help of external agencies to leverage existing and emerging technologies to detect IUU fishing and prevent or deter illegal seafood imports from entering the U.S. market as well as consider the use of countervailing duties, Section 301 tariffs, import declarations, Pelly Amendment certifications, and due diligence requirements to counter forced labor in the sea food supply chain.

The Office of the U.S. Trade Representative (USTR) has also been tasked with combating this specific issue. According to ST&R, it has been requested that USTR “engage with free trade agreement partners, preference program beneficiaries, and others to address forced labor and other abusive labor practices in fishing.” In addition, they have also been asked to “collaborate with Canada and Mexico to prohibit imports of goods, including seafood, produced in whole or in part by forced labor.”

External Applications - Uyghur Forced Labor Prevention Act

The Uyghur Forced Labor Prevention Act (UFLPA) was signed into law on December 23, 2021 by President Biden after a major issue of mass amounts of forced labor had become prevalent in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China.

Under this act, the importation of any items, mined, manufactured, etc. fully or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China is prohibited under Section 307 of the Tariff Act of 1930 and said goods are not allowed entry into the U.S.

Even with this Act, there are some very slim exceptions. If a manufacturer is attempting to import items from this region, those goods can only enter the United States if the Commissioner of U.S. Customs and Border Protection (CBP) concludes that the importer complied with specific conditions and had clear evidence that the imported items were not created in part or fully by forced labor.

The UFLPA also required the integration of the Forced Labor Enforcement Task Force. It is currently headed by the Secretary of Homeland Security and works in conjunction with Secretary of Commerce and Director of National Intelligence where they send a report to Congress regarding their strategy to support the CBP’s enforcement of Section 307 of the Tariff Act of 1930 regarding items, produced with forced labor, imported from People’s Republic of China.

This Act created a lot of significant changes, so the CBP has created an importer guidance resource for assistance with the implementation of the UFLPA rebuttable presumption that went into effect June 21, 2022. 

To learn more about forced labor provisions and how these new processes might affect your company, contact the Van Andel Global Trade Center today !

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ABOUT THE CONTRIBUTOR

Natalie Bremmer is a Student Assistant at GVSU’s Van Andel Global Trade Center . She is a Junior currently pursuing a Bachelors in Business Administration undergraduate degree in Finance, Human Resource Management, and General Management at Grand Valley State University. She enjoys lifting weights, getting lost in a good video game, spending time with friends, and going on long hikes.

Categories: Forced Labor Provisions
Posted on Permanent link for Updates on Forced Labor Provisions in 2023 on April 17, 2023.

Permanent link for Doing Business in Australia: Culture, Mentality, and Etiquette on January 5, 2023

Original post from August 2019 
Updated January 2023

The Commonwealth of Australia, the world’s smallest continent and largest island, is a diverse country with vast iconic natural wonders like the Great Barrier Reef and the Outback, and heavily concentrated cities such as Sydney and Melbourne. Being a newly established country in 1901, it was easy for the country to develop its own cultural personality. Although the culture can be described as Western with indigenous influences, foreigners may be surprised by the quirks and personal touches that Australians have made over time to the standards of their Western lifestyle.

A significant contributor to Western culture is the multinational and famed sport of rugby. Although Australia is well-known for being very much involved in competing internationally in rugby, they are famous for playing their own version as well, Australian football. Australian football can be described as a mixture of rugby, soccer, and American football, with an oval-shaped field and goalposts that resemble those of American football. To score points, players kick the ball through the set of goalposts that are on either end of the field. One of the most intriguing differences in this sport is that the players can pass to their teammates by kicking the ball or punching it with their palms, but they cannot throw it. Additionally, although Australian football is a contact sport, they do not wear any padding, only a jersey uniform.  Australian football is a very entertaining and popular sport to watch. For this reason, it is a notable contributor to the country’s economy. The Australian Football League (AFL) reported revenue of AUD$480 million in 2015.

Economically, Australia is revered as the wealthiest (per adult) country in the world, with a decently low poverty rate of 13.2% as of 2018. The United States plays a particularly important role in the economy of Australia, being that it remains their largest two-way trading partner in goods and services. This is a result of the Australian-United States Free Trade Agreement (AUSFTA) that was established in 2005. The passing of this agreement has since increased the trade flow by 91%.

As a result of AUSFTA, there is no surprise that American businesses seek to further strengthen the trade relationship between the two countries. Business opportunities in Australia are of wide variety and significance. However, the quirky culture can often be intimidating for business persons from other countries. There are three key aspects to understand that will enhance a business trip to Australia by providing a deeper appreciation of the country: the business culture, mentality, and etiquette.

Australian Business Culture

Meetings in Australia can seem different from those typically held in the United States. To start, they are considerably more laid back. It is typical for Australian business persons to use colorful language (curse words) in meetings, as well as, crack jokes to lighten the mood. Additionally, it is common to be addressed by only your first name, and it is expected that you do the same. Even though it may not seem like it, Australians do take these business affairs seriously. Therefore, it is important to dress the part and be prepared for your meeting. If you are presenting a proposition or sitting as a chairman, it is expected that you be punctual and show up to the meeting a few minutes early. Also, be sure to chat about things like the weather or sports to relax the atmosphere.

Modesty and Understanding

A key factor in the business culture of Australia is modesty. Australians are very modest about their job position; it is very unattractive to them when a foreigner emphasizes their title and the greatness of their business. For this reason, it is recommended to not use an aggressive sales technique to persuade a potential partner, as most of the time it will not work. Avoid overselling your company, or coming off as self-important. It is more persuasive if the facts are laid out for them with a friendly attitude. But even if you do execute your sale in this way, they still may clearly express that they are not interested; Australian business persons are known to be very blunt and honest when considering a business contract. It is important to prepare for a straightforward rejection. Of course, this response will not be rude, but rather, more diplomatic. Nevertheless, it may take longer than expected to receive this response. This is because businesses in Australia value a team environment. The top management of a corporation will most likely consult their subordinates before deciding. No matter your position in the company, Australian businesses are very considerate of everyone’s opinion and expect that it be shared. Patience and understanding are key in these situations.

Business Etiquette in Australia

Gifts are not expected at business interactions but are greatly appreciated when given at the correct time. In Australia, it is commonly understood as bribing when a person brings a gift to a meeting before the close of a deal. If you decide to give a gift, simply have one prepared if a close or agreement arises. This will come off as congratulations and will be admired. Additionally, if invited out to dinner or drinks, do not begin to discuss business unless the counterpart does so. It can be seen as rude, or pushy if a business person attempts to bring a pitch to the table because it can cause stress and create a serious atmosphere.

If you are planning a trip to Australia for business purposes, it is recommended to understand the unique business culture, mentality, and etiquette of the country. A comprehensive education of these elements of their lifestyle will allow more of a relationship and connection to develop between two business persons of different backgrounds. And, if you have some free time in Australia, attempt to catch an Australian football game - you will not be disappointed.

Learn More

Learn more about the country, trade, and culture of Australia by registering for the Business Travelers Series: Navigating Australia on February 15, 2023 from 9am - 10am EST. This virtual event is generously sponsored by The  Gerald R. Ford International Airport  and  Michigan Economic Development Corporation

Interested in Traveling to Australia? 
Contact the Michigan Economic Development Corporation today to learn about the Michigan and Pennsylvania co-hosted trade mission to Sydney and Melbourne, Australia with an option to visit New Zealand. 

MI-STEP Funding From MEDC

Did you know that qualifying Michigan companies have the opportunity to receive STEP funds for International Trade Missions and Trade Shows like this one?

To find out if your company is eligible new companies must complete and submit an online intake form here. Existing clients can contact your regional international trade manager. Funds will be approved for specific and measurable export initiatives. Funds for the MI-STEP program are subject to availability. Learn more about the MI-STEP program here.

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About the Contributor

Mackenzie was an undergraduate student at Grand Valley State University and a student assistant at the Grand Valley State University’s Van Andel Global Trade Center. She majored in International Business and Finance while minoring in Spanish.

Categories: Culture
Posted on Permanent link for Doing Business in Australia: Culture, Mentality, and Etiquette on January 5, 2023.

Permanent link for Holiday Celebrations Around the World on December 19, 2022

By Benjamin David 
Originally posted December 19, 2018

The holiday season is here again! GVSU’s Van Andel Global Trade Center would like to celebrate with you by sharing some of the holidays and festivals you can find around the world this month.

Christmas

Every year, millions of people celebrate the birth of Jesus on December 25^th. The celebration of Christmas began in the Roman Empire, though methods of celebration vary greatly around the world. In the West, for example, Christmas trees are popular; the tradition started in Strasbourg, Germany (now part of France) where fir trees were decorated with apples. In Eritrea, neighborhoods will purchase cows and have a community feast together. It is popular for Japanese families to enjoy their Christmas meal at Kentucky Fried Chicken, following an ad campaign in the 1970s. The Icelandic Yuletide Lads, mischievous little elves who climb down the mountains into towns, play tricks and leave children presents; while, it is a popular tradition to roller-skate to church for the weeks leading up to the 25^th in Venezuela. There are many more weird and wonderful international traditions like these.

St. Nicholas Day

Celebrated every year on either December 5^th or 6^th, St. Nicholas day celebrates…St. Nick! St. Nicholas was the bishop of the city of Myra during the 4^th century who was renowned for his generosity. Popular during the Middle Ages, St. Nicholas fell somewhat into obscurity after the Protestant Reformation. The Dutch, however, continued to celebrate “Sinterklaas”, as they refer to St. Nick. Every year on his feast day, Sinterklaas would give candy to all the good children of the Netherlands, and provide the bad ones with coal, as well as potatoes and sticks.

From the Netherlands, Sinterklaas was celebrated in the Dutch colony of New Amsterdam, where the tradition remained after the British acquired the port city and renamed it New York. There, “Sinterklaas” became “Santa Claus” and was merged into Christmas celebrations. Back in Europe, St. Nicholas Day remains popular in Belgium, Luxembourg, and the Netherlands, as well as parts of Germany France, and Italy. Typically, on the night before St. Nicholas Day, children place a shoe or a boot in front of the fireplace. In the morning, they wake up and discover that St. Nicholas has left them a shoe full of candy and cookies (or potatoes). In Bari, Italy, where St. Nicholas is buried, the day is accompanied by gift-giving and a parade.

Wigilia

On Christmas Eve, families of Polish descent will hold Wigilia, a large feast celebrating the birth of Jesus. Typically, families will spend the days prior to preparing for the feast, comprised of either seven, nine, or eleven courses. Before sitting down, everyone breaks a piece of bread from a traditional wafer and wishes for health, wealth, and happiness. It’s a tradition that an odd number of people cannot be sitting at the table at any point during the meal, and that an extra place at the table is set for Jesus. Meals are meatless except for fish, and traditional Polish dishes such as pierogi and babka are served.

Boxing Day

Every December 26^th, Boxing Day comes around. Although, if the 26^th falls on a weekend, the following Monday will be the day of celebration. Boxing Day is popular in the United Kingdom, as well as in Commonwealth nations such as Canada, Australia, and New Zealand. Originally, Boxing Day was the day that the wealthy and the royals would give gifts to their servants and tradespeople, as well as a general day of charity to the poor. Today, Boxing Day is marked by bonuses given to employees and sporting events such as horse races and rugby matches. It is also common to enjoy a second dinner of leftovers made from the big Christmas meal.

Hanukkah

For eight days starting on the 25^th day of the Jewish month of Kislev (which began on December 2^nd in 2018), Jewish communities celebrate Hanukkah. This is the celebration of the rededication of a Jewish temple in 165 BCE after it was desecrated by an invading army. The most well-known Hanukkah tradition is the lighting of the Menorah, which represents the story of “the Oil in the Temple”. As the story goes, on the first night after the desecration of the temple, there was only enough oil left to light the sacred menorah for a single day. This small amount of oil, however, lasted for eight days, the perfect amount of time for more consecrated oil to be brought to the temple and keep the Menorah lit.

In Israel, Hanukkah is celebrated with parties and songs, as well as a few particularly unique traditions. Every Hanukkah, the relay from Modi’in takes place, in which runners carrying torches run from Modi’in to the Western Wall, the only part of the original temple that still stands. Many different foods are eaten during Hanukkah such as Latkes and sufganiyot. Children are also given gifts and chocolate coins and spin the dreidel.

Kwanzaa

Searching for ways to bring the African American community together after the Walt Riots in Los Angeles in 1966, Dr. Maulana Karenga created Kwanzaa. Kwanzaa is a celebration of African heritage and culture, primarily recognized in the United States, but does have observers around the world. Celebrated from December 26^th until January 1^st, Kwanzaa focuses on African tradition and values known as the seven principals. These are unity, self-determination, collective responsibility, cooperative economics, purpose, creativity, and faith. The kinara is a traditional candleholder with seven candles, colored red, green, and black, which represent the seven principals. The candles are lit, and the family joins in a discussion over the theme for that day. On December 31^st, families hold a feast called a karamu, and often wear traditional African clothing.

St. Lucia Day

St. Lucia Day is a Scandinavian holiday celebrated in Norway and Sweden, as well as in Norwegian and Swedish speaking communities abroad. Honoring St. Lucia, a Christian martyr, the day is intended to usher in light in a time of the year where, depending on how far north you are, the sun may never rise. During the celebration, a family will dress one of their daughters in white, and she will serve coffee and baked goods to her family and guests.

Jonkonnu Festival

The Jonkonnu Festival is a Caribbean festival celebrated on December 26^th. Jonkonnu is a specific kind of dance created to blend traditional African and English dance that originated among slaves in the Bahamas, Belize, Bermuda, Guyana, Jamaica, and St. Kitts & Nevis. Dancers and musicians wearing homemade costumes with traditional African and English imagery parade to public areas and hold community dances. Today, it’s also more common for communities to hold dance and costume competitions on that day.

No matter how you celebrate, GVSU’s Van Andel Global Trade Center hopes that your holiday season is filled with cheer!

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About the Contributor

Benjamin David was an undergraduate student at Grand Valley State University and a Student Assistant at Van Andel Global Trade Center. He was an International Relations and Economics major and a German minor. He plans to go to law school after graduation and hopes he may eventually work at the U.S. State Department. Ben loves discussing cars, airplanes, and languages.

Categories: Culture
Posted on Permanent link for Holiday Celebrations Around the World on December 19, 2022.

Permanent link for A Summer of Sanctions: Things to Consider Before doing Business with Russia in 2022 on July 14, 2022

By: Natalie Bremmer

United States relations with Russia have never been the best, but Russian threats and advancements into Ukrainian territory have put extreme tensions on the minor singular ounce of stability that was once present.

In the following months, pre-to-current invasion, the U.S. worked tirelessly amongst themselves and in collaboration with other countries to impose a variety of sanctions on Russia in an effort to slow this ruthless attack.

Check out the timeline of events below to get up-to-date on what has been going on with Russia.

February

The first, most notable event in this timeline of sanctions started on February 21, 2022, where, within pro-Russian Donetskaya Narodnaya Respublika (DNR) and Luhanskaya Narodnaya Respublika (LNR) regions of Ukraine, new investments, trade, and financing from U.S. personnel to this region had been stopped; the reason being that there were Russian forces already in these areas and the Russian government kept spreading false information of Ukrainian aggression towards them.

Not even three days later, on February 24, 2022, Russia publicly invaded Ukraine. Within this same day, the U.S. passed a series of sanctions including:

• Freezing several Russian banks and rejecting any future transactions; VTB Banks and Public Joint Stock Company Sberbank of Russia to name a few
• Putting financial limitations on several Russian elites, oligarchs, and private entities
• Limitations or complete bans on roughly 24 Belarusian people and entities; most banks, defense, and security suppliers, and defense officials
• Restrictions on the export of semiconductors, computers, lasers, and other technologies to Russia

Two days later, on February 26, 2022, the United States, European Union, United Kingdom, Japan, Canada, France, Italy, and Germany all imposed a sanction removing select Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) program to limit their access to reserves. In addition to this, they also aimed to stop key Russian entities from getting citizenship in other countries to avoid already imposed sanctions.

March

March consisted of a flurry of several more sanctions. One of the most notable ones was banning the importation of Russian oil, coal, and liquified natural gas which was announced on March 8, 2022.

Other relevant sanctions included travel bans going into Russia, banning transactions between the different businesses within the defense, marine, aerospace, and electronics sectors in Russia and Belarus to United States entities, restricting more than 300 high-class and powerful Russian figures, and solidifying financial sanctions against Russia that were already put in place in addition to some new ones.

During this same month, the United States, European Union, United Kingdom, Japan, Canada, France, Italy, and Germany reconvened in two separate meetings to announce increased import tariffs on Russia, eliminating their World Trade Organization membership benefits, and denying them access to World Bank and International Monetary Fund (IMF) to eliminate their borrowing capabilities.

April

Sanctions introduced in April  further separated Russia from the most profitable sectors within the U.S., including:

• Russian darknet and ransomware entities; Hydra and Garantex
• Alrosa, the largest Russian diamond mining company
• Banning Russian and Russian-affiliated vessels from entering U.S. waters
• Russian virtual currency mining companies; Transkapitalbank, Bitriver, Tsargrad, and more
• Temporary denial orders towards Russian aircraft carriers Aeroflot, Azur Air, and UTair for evading previous sanctions

However, one of the most notable events during this month was the two laws President Biden passed on April 8, 2022.

The first, named “Ending Importation of Russian Oil Act”, bans the importation of any energy-related products classified under Chapter 27 of the Harmonized Tariff Schedule from the Russian Federation. This law also strictly prohibits investments in anything that would aid Russia in the takeover of Ukraine.

It is, however, written into this law that the acting president would be able to lift this ban after 90 days of submitting a certification to Congress.

The second law, titled “Suspending Normal Trade Relations with Russia and Belarus Act”, removed both Russia and Belarus from the ‘Normal Trade Relations’ – Column 1 – of the Harmonized Trade Schedule and placed them in Column 2 with much higher rates than Normal Trade Relation countries.

The majority of the written portion of this law was explaining their reasoning for the column shift; essentially how the United States and Ukraine are both members of the World Trade Organization (WTO), how Russia was also part of the World Trade Organization at the beginning of the invasion, and then how not only did Russia’s invasion into Ukraine, denied Ukrainians of their right to independence and sovereignty but also continues to threaten international relations and hampers Ukraine’s ability to participate in the World Trade Organization. Since Belarus has been providing very public support to Russia during this time, they were also moved to Column 2.

On January 1, 2024, Russia and Belarus are scheduled to be reclassified under Column 1 and once again receive Normal Trade Relations treatment.

Similar to the first law, the president can submit a proclamation to move both Russia and Belarus back to Column 1 rates which would take place 90 days after the submission date and would last no longer than one year. 

May

The passing of sanctions in May slowed significantly compared to March and April, but a few notable events took place regardless.

On May 8, 2022, the Leaders of The Group of Seven – United States, United Kingdom, Japan, Canada, France, Italy, and Germany – gathered in Berlin with the president of Ukraine and agreed on five more key elements to put into effect as new or improved sanctions to cripple the Russian war effort.

The biggest driving point was a permanent phasing out of dependence on Russian energy, including oil.

The other decrees included:

• continuing with sanctions against Russian banks
• banning the export of key services to Russia that could help with war efforts
• fight Russian propaganda by limiting the revenue private companies can transfer to Russia and their affiliates, and
• continue with sanctions against the extremely wealthy and all of their family members that support President Putin in this conflict

On May 9, 2022, more strict restrictions were added to existing sanctions (enacted on March 3, 2022) on American exported goods – mostly wood products and construction machinery – that were originally meant to slow down Russia’s oil production but were slightly repurposed to stop the replenishment of war materials.

On the same day, the tariffs on Ukrainian steel that were put in place by ex-President Trump were temporarily lifted for one year.

Closer to the end of the month, May 24, 2022, the U.S. Treasury blocks Russian entities from paying debts back to bondholders or, in more generous cases, increased interest by as much as 50% from their original totals.

June

June consisted mostly of fine-tuning sanctions that were already imposed in prior months.

June 2, 2022, was quite an eventful day– including adding 71 more entities to the sanction list which included mostly ‘military end-users,’ freezing more assets stored around the globe of wealthy and influential Russian individuals, and adding more export controls to limit items used for Russian military purposes, and further explaining U.S. export controls to allies with a readout by Deputy Secretary Don Graves in Belgium.

Later on June 15, 2022, the U.S. government targeted a Russian extremist group self-titled the Russian Imperial Movement (RIM), formerly classified as a terrorist group in April of 2020, and significantly limited their ability to move funds by sanctioning their two most prominent leaders.

The rest of that month consisted of more Temporary Denial Orders on airlines that continued to violate travel sanctions, addressing evasion attempts on Russian and Belarusian fronts to skirt around financial sanctions, and creating even stricter access to companies attempting to export military supplies and other technologies to Russia.

To learn more about the sanctions imposed on Russia and how that could affect your business, contact GVSU's Van Andel Global Trade Center and sign up for our 5th Annual Summer Summit taking place on August 3, 2022, at the GVSU Alumni House.

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Natalie Bremmer is a Student Assistant at   GVSU’s Van Andel Global Trade Center . She is a Junior currently pursuing undergraduate degrees in Finance and Human Resource Management at Grand Valley State University. She enjoys lifting weights, getting lost in a good video game, spending time with friends, and going on long hikes.

Categories: Export Controls Russia Sanctions
Posted on Permanent link for A Summer of Sanctions: Things to Consider Before doing Business with Russia in 2022 on July 14, 2022.

Permanent link for Big Changes Are Coming: Huge Drop in the Monthly U.S. Trade Deficit on June 15, 2022

by Natalie Bremmer 

Big news rocked the trading world recently with the announcement of the monthly goods and services trading deficit dropping a staggering 19.1% for the United States.

April 2022’s numbers were just released on June 7th, 2022 stating that the $107.7 billion trade deficit from March 2022 had dropped by $20.6 billion down to $87.1 billion in April 2022.

More specifically, U.S. April exports were $252.6 billion, roughly $8.5 billion more than March, and about a 3.5% increase between those two months. U.S. April imports were $339.7 billion, which is a $12.1 billion or 3.4% decrease from the previous month of March.

Year-To-Date

Though April was a great month, in the big picture the United States is still feeling the effects of the Covid-19 pandemic. Between April 2021 and April 2022, the goods and services deficit increased by 41.1% totaling $107.9 billion.  This is essentially due to exports increasing by 18.8%, coming in at $151.3 billion, and imports simultaneously increasing by 24.3%, totaling $259.2 billion within this timeframe.

Three Month Trends

On a more positive note, the U.S. three-month trade deficit average is starting to look a lot more promising. Between February 2022 and April 2022, the average goods and services deficit fell by $0.3 billion, down to a total of $94.3 billion. During this time period, U.S. exports increased by $8.3 billion for a total of $242.2 billion, and imports increased by a marginal $8.0 billion totaling $337.4 billion.

Monthly Export Trends

In April 2022, the U.S. export of goods increased by a substantial $6.1 billion to a total of $176.1 billion. The largest portions of this increase came from industrial supplies as well as food and animal feed, accounting for about $4.5 billion combined. Another large portion of the increase was due to the export of capital goods– namely civilian aircraft.

During the same month, the U.S. export of goods also increased by roughly $2.4 billion, totaling at $76.5 billion. The main categories that caused this increase were travel and transport which increased by $1.5 and $0.3 billion respectively.

Monthly Import Trends

In April 2022, U.S. imports of goods actually decreased in comparison to the prior month by $13.0 billion, with a sum of $283.8 billion for the month.

Some of the largest contributors to this decrease were consumer goods, industrial supplies, and capital goods which all decreased by $6.3, $5.4, and $2.6 billion respectively. However, U.S. imports of automotive vehicles rose by roughly $1.4 billion.

Alternatively, the import of services during the same month increased by $0.9 billion compared to the month prior, capping out at $55.9 billion. The largest contributors to this increase were travel, with a $0.6 billion dollar increase, and other business services at $0.2 billion.

For the full report, you can find the U.S. Census post here.

Keep up with VAGTC’s Trading Thoughts Blog for additional updates covering the trade deficit information released in July.

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Natalie Bremmer is a Student Assistant at   GVSU’s Van Andel Global Trade Center . She is a Junior currently pursuing undergraduate degrees in Finance and Human Resource Management at Grand Valley State University. She enjoys lifting weights, getting lost in a good video game, spending time with friends, and going on long hikes.

Categories: Export Import
Posted on Permanent link for Big Changes Are Coming: Huge Drop in the Monthly U.S. Trade Deficit on June 15, 2022.

Permanent link for Michigan Small Businesses are Missing Out on Free Money: Why You Should Take Advantage of MI-STEP on April 20, 2022

by Natalie Bremmer

Michigan Economic Development Corporation's MI-STEP

The Michigan Economic Development Corporation (MEDC) oversees Michigan’s State Trade Expansion Program (MI-STEP) to give financial assistance to small businesses to pursue exporting their products and gain access to larger global markets.

They have roughly $2.667 million worth of aid to give out to small businesses across the state. Up to 75% of pre-approved exporting expenses can be covered with a $15,000 maximum per business in a fiscal year when the Michigan company follows the MI-STEP eligibility criteria.

This program makes entering or expanding in new global markets viable for small or medium-sized businesses eager to expand while accommodating a more limited budget.

MI-STEP may seem confusing at first glance, so here are its three main objectives:

• Increase amount of small and medium-sized businesses in Michigan that participate in exporting
• Grow the dollar value of Michigan exports
• Provide an avenue for Michigan small businesses to explore new trade opportunities

The eligibility criteria to secure aid from this program include:

1. Being in accordance with SBA standards
2. Demonstrate understanding of export costs and business with foreign markets; including freight forwarding, packing, shipping, and customs brokers
3. Show potential for successful exporting as well as a positive impact on the regional economy
4. Provide an EIN number that is linked to a Michigan address
5. Must be in good standing with the Michigan Department of Treasury as well as any other regulatory agencies
6. Must be a U.S. company that is prepared to export goods of U.S. origin with a minimum of 51% U.S. content

Once a business gets this aid, there are particular transactions that will be covered by MI-STEP funds. These include but are not limited to:

• Participating in foreign-trade missions
• E-commerce fees for advertisement and website design
• Participation in international trade shows
• Foreign sales trips (up to two people on an economy flight)
• EXIM export credit insurance premiums
• Participation in export training workshops

One company that benefitted greatly from an MI-STEP award was Armor Protective Packaging: a rust removal company that specializes in making clean, safe, and easily used vapor corrosion inhibitor packaging. Through MI-STEP, they were able to expand to provide to 90% of the Fortune 500’s industrial companies as well as several other countries across the world. More specifically, MI-STEP helped this company with having the funds to create a local website translated and customized for the different languages and cultures of the specific countries they were selling to– effectively expanding their digital footprint. They were also able to travel to some of these countries to network and secure international business partners which was another huge step for them to reach their global markets.

GVSU's Van Andel Global Trade Center

The Van Andel Global Trade Center is an easily accessible resource with various export training programs and workshops that are eligible for MI-STEP coverage that teaches small businesses how to find success similar to how Armor Protective Packaging did. VAGTC’s incredibly knowledgeable team has been working with businesses across Michigan for over two decades in both one-on-one and group settings– entirely depending on their clients' needs. Throughout their time at GVSU they’ve worked with over 10,000 companies and have assisted more than 31,000 business professionals. Not only do they have a wealth of experience with exporting, but they also assist companies of all sizes with importing concerns.

VAGTC consults with companies in the following areas:

• Exporting/Importing
• Export & Import Procedure Manuals
• Compliance (export and import)
• Free Trade Agreements such as USMCA
• Global Supply Chain Logistics
• Export Controls Training: ITAR & EAR
• Cultural Training
• Market Research
• Foreign-Trade Zones
• Global Risk Factors
• Harmonized Schedule/Classifications, Export Control Classification Numbers
• and more!

Their website has a variety of helpful resources like guidebooks, available programs, trade zones, and Worldwide Credit Reports. VAGTC memberships are also available for discounts on workshops and more individualized assistance.

With an ever-expanding global market, there has been no better time to enter it than right now. Check out MEDC's MI-STEP website with full details on the program and begin taking full advantage of all that MEDC has to offer! Companies can also learn more about VAGTC’s services and how we can get you connected to the MI-STEP program by contacting us today! Now is the time to grow your small business through increased export sales, let us help!!

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About the Author

Natalie Bremmer is a Student Assistant at  GVSU’s Van Andel Global Trade Center . She is a sophomore currently pursuing an undergraduate degree in Finance and Human Resource Management at Grand Valley State University. She enjoys lifting weights, playing video games, spending time with friends, and going on long hikes.

Categories: Export MEDC
Posted on Permanent link for Michigan Small Businesses are Missing Out on Free Money: Why You Should Take Advantage of MI-STEP on April 20, 2022.

Permanent link for The 23rd Michigan Automotive Suppliers Symposium on February 28, 2022

written by Caleb Holland

The Michigan Automotive Suppliers Symposium is a yearly event bringing together business owners, senior management, and decision-makers from all tiers of the automotive industry. This premier automotive supplier event provides the most up-to-date industry forecasts, latest issues, and trends, with opportunities to network and learn from others in the increasingly challenging and ever-changing industry of automotive.

The 23rd Michigan Automotive Suppliers Symposium happening on March 10, 2022, in Grand Rapids, Michigan paints the picture of what a modern auto industry is. Guest speakers from five organizations will take the stage to offer diverse perspectives on what is going on in the auto industry currently and will discuss their projections for the future. A new age of auto is upon us, so buckle up and enjoy the ride.

General Motors

The Automotive industry is headed into what could be the largest shift in automotive technology: The shift from fuel to battery. Electric vehicles are starting to hit the market at a rapid rate, and by 2050, they are expected to make up 60% of new car sales. One company, located in the heart of Michigan's automotive industry is beginning to transform its market to stay ahead of the industry. General Motors has pledged a transition to electric vehicles. Over 50% of their spending will be dedicated to these models of the future. By 2025, their goal is to have 30 EV options launched globally with T available in North America. Speaking for GM at the 23rd Michigan Automotive Suppliers Symposium is David Leich, Executive Director of Global Supply Chain at General Motor. He is equipped with over 30 years of experience in the automotive industry and his expertise will complement his reports on GM’s current position in the global market as well as where they are headed in this ever-changing industry.

Learn more about General Motors

IHS Markit

IHS Markit analysts have similar ideas about this new age of vehicles. With extensive forecasts of the driving industry, they predict the introduction of electric cars will create a domino effect in other industries. Gas stations will become obsolete; instead, charging ports can be installed at entertainment sites and shopping centers. The world of transportation will be cleaner and faster with this innovative technology. Mike Wall, a Grand Valley State University Alumni, will be speaking on the behalf of IHS Markit and will give his analysis of the automotive industry, first-hand.

Learn more about IHS Markit

HYZON Motors

Hydrogen is a key component in creating water, but Hyzon Motors has discovered many more of its capabilities. Their technology is based on complete hydrogen power. Hydrogen can be converted to electricity which, in turn, creates power for commercial vehicles and marine equipment. Jay de Veny, from the Hyzon group in Troy, Mi, has been working to execute the company's visions and create products that could change the course of the industry.

Learn more about HYZON Motors

DRiV Inc. a division of Tenneco

Adam Kochenderfer has been working with DRiV Inc. to provide a strategic progression for their values and quality of products. As an industry leader in aftermarket and original equipment manufacturing, it is critical for Driv Inc. to use innovation to remain on the command post of the industry. Automobile parts manufacturing is dynamic and diverse, and Adam has the solutions to make their visions possible.

Learn more about DRiV Inc. a division of Tenneco

Warner Norcross + Judd

The stumbling blocks of the law are no problem for Warner Norcross + Judd. They are the epitome of the modern law firm by combining the latest technology with their tried and true law practices. Extranets and video technology allow the firm to assist clients in the same secure way as meeting in person. With changing automotive technology comes changing laws, but Warner Norcross + Judd has the compass to navigate its challenges. Michael Brady will communicate how they have been backing the automotive industry as it goes through its new-age transformation.

Learn More about Warner Norcross + Judd

Join us on March 10th for a morning of networking and automotive discussions! Register here!

This event is generously title sponsored by: Plante Moran

Along with our 2022 Symposium Sponsors:  ArtiFlex, Chase Bank, Corrigan Air & Sea, IHS Markit, Michigan Economic Development Corporation, Morrison Industrial Equipment, The Right Place, and Warner Norcross + Judd

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About the Author

Hello! I am Caleb Holland and I am a freshman student assistant at the Van Andel Global Trade Center. I am currently studying marketing and advertising at Grand Valley and plan to pursue a career at an advertising agency. When I am not working or studying I enjoy running, swimming boating, and spending time with friends. VAGTC has provided me with great opportunities and I am excited to see what more I will accomplish here!

Categories: Automotive
Posted on Permanent link for The 23rd Michigan Automotive Suppliers Symposium on February 28, 2022.

Permanent link for The Michigander's Guide to the Lunar New Year 2022 on February 1, 2022

Updated from Orginal Blog by Ruixuan Ran

Whether you are still in holiday mode or you are just bored with the dull winter sky, cheer up! We have some good news – the Lunar New Year, also known as the Chinese New Year (CNY) is here! This month-long fiesta will give you a legitimate reason to get back into holiday celebration mode and will help light up dreary the February days. Like many ancient festivals around the globe, Lunar New Year, also known as Spring Festival, follows a different timetable: the Lunar Calendar. That being said, Spring Festival begins January 31st, with New Year’s Day falling on February 1st and the festivities continuing until the 15th day of the first Lunar month (aka February 15th ).

We know it’s a busy time, but we didn’t want you to miss out on this exciting holiday that millions of people around the world will be observing, Chinese New Year! So here are some important details to help you celebrate Chinese New Year like a pro.

It is the Year of…

The very first thing to know is that we are celebrating the Year of the Tiger. Each lunar year is assigned one of the twelve Chinese zodiac signs – rat, ox, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog, and pig – which rotate in a twelve-year recurring cycle. (Sorry cat-lovers, there is no Year of the Cat.)

Unfortunately, it is believed that people will have bad luck during their zodiac year, so for all the people who are turning 12, 24, 36 etc. in the year beginning on February 1st, you may want to wear something red all year round. Red is a color largely perceived as a sign of blessing and justice in Chinese culture, so adding something red to your wardrobe, such as a bracelet, shirt, etc., might help to ward off bad luck.

Red, Red, Red!

China is enamored with the color red. It symbolizes vitality, blessings, justice, and festivity. During CNY, you will see people using red almost everywhere you look. Houses, office buildings, and streets are covered with red lanterns and lights, and many people wear red clothes for good luck. The color is indispensable to the Spring Festival holiday.

Fu Dao

After throwing out all your bad luck by thoroughly cleaning up your house, the first step to demonstrate that you are ready to welcome a fresh new year is to decorate your door with an upside-down Chinese character “Fu” (). “Fu” means fortune, luck, prosperity, and any other favorable words you can think of. Why put the Chinese character upside-down? Well, here is a classic example of a Chinese pun. The word for “upside-down” (dào, ) is a homophone for the word for “to arrive” (dào, 0). By hanging the character upside-down, you are suggesting your fortune is on its way.

Lucky Money

Perhaps one of the most gratifying ingredients of the CNY festivities is the distribution of the red envelopes with “lucky money” wrapped in them. The origin of the tradition can be traced back to BC days when people believed children were weak and a monster named Sui would eat children at the end of the year. Parents would wrap coins in red paper to scare (some say bribe) the monster in hopes of a safe and peaceful year for their children. That is why the real name of “lucky money” is “ya sui qian” which literally means “the money that suppresses Sui”. The amount of lucky money given widely varies and depends on the region, but several hundred Yuan is generally expected.

Chinese New Year Jams

Just as we might instinctively put “It’s the most wonderful time of the year…” on the radio after the first snowfall in Michigan, the Chinese New Year unofficially begins when malls start to loop the classic holiday songs that everyone claims to be tired of, yet still sing along with. Jamming some CNY classics equivalent to Rudolph the Red-Nosed Reindeer at your party would definitely bring the festivity up a notch. Some of the most well-known songs are: Gong Xi Fa Chai (directly translates to Wish You Get Wealth), New Year Celebration and Congrats, Congrats. Additionally, there are several collections of CNY jingles online, even if you do not know the lyrics, it is the celebratory spirit that counts.

Midnight Carnival: Spring Festival Gala, Fireworks & Mahjong

In 1983, China Central Television launched the first Spring Festival Gala, a show that airs every Chinese New Year’s Eve featuring musical, dance, and drama performances. Since then, it has become a modern CNY tradition to watch the Gala with family while eating a reunion dinner and, more than likely, playing the game Mahjong.

Mahjong is to the Chinese what Euchre is to many Michiganders. I would argue though, the Chinese love for the game runs deeper. The fun part of this tile-based game is that there is no pressure to win it. In fact, Chinese people can barely ace it themselves as each province or even each town has its own rules. So if your Chinese friends spend half an hour debating on the rules before starting the game, don’t worry about it.

Of course, it would not be much of a New Year’s festival without firecrackers and fireworks. Although in very recent years, local governments of major cities have limited the usage of fireworks for safety, pollution, and noise reasons, many people will still stay up until midnight to watch the fireworks displays.

Modern Day

Needless to say, we now live in a very different time to the original Chinese New Year festivals. As many older folks might lament the changing of bygone conventions, the younger Chinese generation has offered their own interpretations of the holiday and many of these are now new traditions.

Customarily, the elders of a family give the red envelopes of lucky money to the children. Today however, there is no limit to whom you can give red envelopes to including friends, coworkers, or anyone you care about. The rise of Jack Ma’s Alibaba Group has saved a lot of work for this gift-giving process, as apps such as WeChat and AliPay allow people to send “red envelopes” instantly (and in a more environmentally responsible way). An individual can digitally send several Yuan to another person as a gesture to spread good cheer, or he/she could put a red envelope in a group chat for people to share. This ritual has become more and more popular for business occasions as well.

Reuniting with family members back home used to be the most important way to spend the New Year, but today a stronger economy and rising living standards have extended the option of where this celebration takes place. Instead of undergoing the busiest travel rush of the year, many opt to travel overseas to Japan, Korea, Southern Asia, and even Europe during the New Year period. In fact, the Spring Festival has become the most popular time for the Chinese to take family vacations.

The 15th day of the first Lunar month (February 15) marks the official end of the holiday; you will probably be a CNY expert by then! As the old saying goes, ‘well begun is half done'. So go ahead and dress in red, hang your “Fu” on the door, spread the lucky money cheer, and have a great New Year!

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About the Contributor

Ruixuan Ran graduated from Grand Valley State University in 2018. She was a Student Assistant at Van Andel Global Trade Center. She grew up in China, and during her time at GVSU she double-majored in accounting and international business with a minor in French.

Categories: China Culture
Posted on Permanent link for The Michigander's Guide to the Lunar New Year 2022 on February 1, 2022.