Why Is The Color Red Considered Lucky In Chinese Language and Culture?
Here we have an old tale in China, saying that there is a beast called the "Nian" (年獸), and it will only attack people in spring. But it's afraid of all things red.

That's why Chinese people use many red things in the lunar new year (also in spring). It became a common color represent "lucky" in Chinese culture.

More information about Nian can be found here:
http://en.wikipedia.org/wiki/Nian