Inserted the image of a lantern and removed the background. Also in between all the lines.

I clicked on outline and set it to zero, so now i have the outline piece.

Inserted a circle and placed it on the top of the lantern and over lapping the top a little bit, then clicked combine unite.

The hanging part is now attached. Added another circle to fit in the top circle, so now i have the hole to put a rope through.

I hoovered over the whole image and right clicked to group, so the pieces can't move.

Inserted a free image of a dragon and removed the background.

Clicked on outline and set it to zero. Moved the outline a side, then made it smaller to fit in the lantern.

Clicked on combine, then unite, so it became one piece.

I hoovered over the lantern and clicked on outline, with the inner lines un marked and set to zero.

Then i inserted a circle and combined and united it to the top of the lantern. 

Added another circle and placed it into the first circle for the hole.

I then added some text to engrave and place them where the open spots will be. You can leave those open if you want and don't add text.

Now it's ready to cut/engrave.

First i had cut/engraved out the mirrored gold acrylic for the back, then used red acrylic for the front.

I used acrylic glue to stick them together. 

Then i added a tassel to a piece of string and placed it on the back with some clear tape.

I used tape, since the tassel isn't that heavy and the tape will hold it well.

And there you have the finished Chinese New Year wall deco. 

Hope you like this project.