The annual event sees dancing lions, acrobats and floats parade from Shaftesbury Avenue to Trafalgar Square.
The new year, also known as the Spring Festival, is based on the lunar Chinese calendar so it changes each year.
Each year is marked by one of 12 animals that appear on the Chinese zodiac. This year is the year of the Rooster.
The event in London is said to be one of the biggest outside Asia.
Thousands of people have taken to the streets of central London to celebrate Chinese New Year.