Celebrations for the Lunar New Year began on Tuesday, Feb. 17, as China and communities across Asia ushered in the Year of the Fire Horse. The Chinese government is using the holiday period, a time of significant domestic travel and spending, to encourage economic consumption in the world’s second-largest economy.
The festival, known as the Spring Festival in China, is a major cultural event based on the lunar calendar. It prompts a 40-day travel period called Chunyun, during which millions of people journey across the country for family reunions. Government officials have stated expectations for 9.5 billion passenger trips during this period, an increase from nine billion trips reported the previous year.
In an effort to stimulate the economy, the government issued consumer vouchers valued at more than 360 million yuan ($52 million) in February, according to state media reports. This initiative is part of a broader plan to increase domestic spending among Chinese households, which have a high savings rate.
The holiday is observed for approximately 15 days, concluding with the Lantern Festival. Traditions include cleaning homes, decorating with red lanterns and paper cuttings, and family reunion dinners on Lunar New Year’s Eve. During these gatherings, red envelopes containing money, known as hongbao, are exchanged as symbols of good fortune. A state-sponsored televised gala on Monday evening featured performances to mark the occasion.
The Chinese zodiac is based on a 12-year cycle, with each year represented by an animal. These animals are paired with one of five elements—metal, wood, water, fire, or earth. The current year combines the Horse with the fire element, a pairing that occurs every 60 years. According to traditional beliefs, the Year of the Fire Horse is associated with energy and change.
The Lunar New Year is also celebrated widely beyond China. In Vietnam, the holiday is called Tet Nguyen Dan and is centered on family reunions and traditional foods. South Korea observes Seollal, or Korean New Year, with customs that include honoring ancestors. Public holidays are also observed in countries with significant Chinese populations, such as Singapore and Malaysia. Diaspora communities in cities including London, Sydney, and San Francisco also hold large public celebrations featuring parades and cultural performances.
