Chinese disabled artists perform during an event to celebrate the Chinese Lunar New Year, in Panama City, capital of Panama, on Feb. 8, 2016. [Xinhua/Mauricio Valenzuela]

The parade will continue throughout the week in various parts of the city where other businesses belonging to the Chinese community are located, according to Yao.

To add to the festive atmosphere, Panama City has introduced this year two famous shows from China -- "The Thousand-Hand Bodhisattva" and "My Dream", which present various styles of Chinese dancing and singing amid dazzling stage effect.

The shows are supported by the Chinese Ministry of Culture, the China-Panama Trade Development Office and Panama's General Foundation of Chinese Entrepreneurs, among other local organizations and entities. More than 50 artists from China participate in the on-going shows.

Meanwhile, there will also be acrobatics and martial arts performances, magic shows, tea-tasting and Chinese calligraphy classes going on in the city to display Chinese culture to more Panamanians.

Around 300,000 people of Chinese origin are currently living in Panama, which has a total population of more than 3.5 million. The earliest batch of Chinese arrived here over 150 years ago.