Dunedin Mayor Jules Radich said he believed the coming celebrations would be the city’s "best ever".
The new, much more substantial festival came shortly after the 30th anniversary of the Dunedin-Shanghai sister city relationship, Mr Radich said.
"The relationship with Shanghai and China has been growing over recent years. Since we've come out of Covid, I think the city has put some more effort into it and we've tightened up our education ties, expanded our ties in the realm of education and are working on economic, on mutual economic benefits."
Enterprise Dunedin destination manager Sian Sutton said the expanded cultural festival was part of a recent rejuvenation of events in the city, alongside last month’s Christmas in the Garden and the creation of the new George Street Market.
"Events like these bring value to local communities and attract visitors as they showcase Dunedin as a vibrant, diverse, welcoming city," Ms Sutton said.
In a statement, Enterprise Dunedin said as the present Year of the Dragon made way for the Year of the Snake next month, the whole city would "come alive".
Streets and businesses would be adorned with Chinese lanterns and a calendar of events from January 26 to February 9 would celebrate Dunedin’s long-standing links to Chinese culture.
Tourism operators such as Dunedin Railways and Lan Yuan Dunedin Chinese Garden were hosting events including lantern festivals, Chinese heritage train trips, tours and more, the statement said.
Chinese history in the city dating back to the gold rush, market gardens and laundries would feature as well.
The previous celebrations were one-day affairs.
Lan Yuan Dunedin Chinese Garden would remain central to the new expanded festival.
On February 1 the gardens would host a parade, dragon dances, food trucks, cultural performances and fireworks, the statement said.
Dunedin Chinese Gardens Trust chairman Malcolm Wong said the creation of a two-week festival was "a real acknowledgement" of the deep connections and influence of Chinese people and culture in Dunedin.
"The Chinese New Year period is the most important family and cultural festival for Chinese people, and having the community and city coming together, not just for a day but for ... days of celebrations for the first time, shows the special place Chinese people, culture and stories have in the fabric of the city." — APL