The idea is to carefully balance the value of the gift with the return gift and to do it smart.
"The reciprocal money, favor or gift should be of equal value or just slightly more. It looks stingy to give a cheap gift. But if I repay with a gift far more expensive, then it puts pressure on the other person to match up and close the value gap by giving back again," Chen explains. It looks silly to return the favor right away in most cases, he says. It's too obvious that you are returning a favor. The smart way is to reciprocate on the right occasion to make it look natural. For example, giving a big red envelope to person's child on Lunar New Year or giving coupons for holiday travel are considerate.
It's all about reciprocity - and face: I'm afraid I would lose face for taking advantage of you if I don't return your a gift or favor.
Other Spring Festival traditions
Dust cleaning
In the old days, Spring Festival started from the 24th of December to the 18th of January on the lunar calendar.
The first day was "dust cleaning" day to clean houses, wash, scrub, air out quilts, get rid of the old and welcome the new. Though it is not strictly observed, most Chinese still do a household cleanup before Lunar New Year.
Kitchen god
Another tradition only maintained by a few rural and suburban people is praying to the God of Kitchen. Once every family would hang a picture or a statue of the kitchen god in the house since it was considered the protective deity of the family.
The kitchen god protects and monitors the family for the whole year and leaves to report to the Emperor of Heaven at midnight of Lunar New Year's Eve. So the whole family puts sweets in front of the statue or picture and prays to the kitchen god, imploring him to speak only sweet words.
Couplets and fu
Between the 24th and 31th days of December on lunar calendar, people decorate their houses and get goods and snacks for the Lunar New Year. They usually hang Spring Festival couplets and the character fu (luck) on the door. Some families put up cheerful paintings and red paper cut-outs.
Guard the year
On Lunar New Year's Eve, the whole family eats dinner together, stays up and chats all night long - no snoozing - to welcome the Lunar New Year. The custom, called shousui, requires everyone to stay awake all night.
Shou means to guard and sui means the year. The idea is to kick out all the old and evil things on the last day of the year, and welcome a new start together, wide awake.
Today, the nianyefan (Chinese New Year's Eve dinner) is still the most important one for Chinese, but a few people stay awake to guard the year.
Many Chinese gods, including the Emperor of Heaven, were "born" between the first and 18th day of January on lunar calendar, so people celebrate their birthdays. And it all goes back to normal after the 18th day of lunar January.
All these celebrations are rarely observed because now people have to go back to work on the 7th day of January on lunar calendar.
History of yasui qian
Giving new year's money originated in the Han Dynasty (206 BC-220 AD), but back then it wasn't real currency. Instead, it was a decorative coin shaped like real currency. It was stamped with lucky phrases like "Long Life" or "Peace."
In the Ming Dynasty (1368-1644), yasui qian became a stream of real copper coins on a red string, red being the luckiest color.
Between 1911 and 1949, people started placing paper currency in red envelopes. It was popular to use bills with consecutive numbers to indicate a stream of unbroken, continuous luck.
In the 1940s, you were lucky to get any red envelope money since the country was at war. It was usually several coins only enough to get a candy at the time.
In the 1950s, it was common to give five or 10 fen (100 fen equals 1 yuan) to kids on Lunar New Year.
In the 1960s, the standard was up to 25 fen, usually enough to get a small firecracker or a cartoon book.
In the 1970s and 1980s, it was common for kids to find five to 10 yuan in the red envelope.
In the early 1990s, the standard was already up to 50 or 100 yuan as children became even more precious due to the one-child policy.
From the late 1990s onward, it all depends. Some rich parents give thousands of yuan to their children. Major renqing - the big payouts
Though renqing (reciprocal giving to maintain social relations) permeates daily live, there are some big events and major occasions.
One is expected to give gifts or red envelopes if invited during Spring Festival, to weddings, to celebrate the birth of a child, to celebrate the move to a new apartment or house.
It's always a good idea to ask other guests in advance if you are not sure what and how much you should give. The amount depends on city living standards and your relationship to the host.