A firework display was held in Leicester Square
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The Mayor of London has announced plans to create a second Chinatown in London.
Ken Livingstone made the announcement during the city's celebrations for Chinese New Year.
The Year of the Monkey got under way with a tree planting ceremony in Chinatown followed by a children's parade to Trafalgar Square.
Speaking at the opening ceremony, Mr Livingstone said it would take a few months to get the paperwork right, but he was committed to a second Chinatown.
He said: "I would like to see the creation of a new Chinatown in London as we come to develop the Thames Gateway so that we will see the pattern of tourism, trade and culture increasing eastwards.
"The second Chinatown will be at the centre of tourism in London. "
He added that he was meeting the Mayor of Beijing in a few weeks' time to discuss London's bid for the Olympics 2012.
Earlier during the festivities, Mr Chu-Ting Tang, president of London Chinatown Chinese Association, said in a speech that business in Chinatown were losing money because of the introduction of congestion charging by Mr Livingstone.
Firework display
"For the first time in 10 years businesses in Chinatown have lost money," Mr Tang said.
"This is due to the introduction of the congestion charge and the Sars outbreak."
He also said that plans for a new Chinese arts centre were under way.
As part of the celebrations there was a firework display in Leicester Square and food sampling from the Chinese food stalls in Newport Place and Gerrard Street.