Boris Johnson watched on as the bright red and yellow costumes danced outside Number 10.
The prime minister also painted one of the Chinese Lions in front of photographers and onlookers.
He is hosting a reception for the British Chinese community to celebrate the advent of Lunar New Year, which lasts from Saturday until February 8.
The jubilant scenes were a contrast to the series of cancelled festivities in China as authorities battle to contain the coronavirus outbreak.
Events are taking place across the UK, including a parade between Charing Cross and Chinatown on Sunday.