Paper Chinese lanterns are an exotic way to spruce up your party decorations, and they are something anyone can make.
Any kind of paper is okay to use, but it should be able to hold up to creasing and cutting (so no tissue paper). Construction paper is easy to get and works great.
Take a sheet of the paper you chose and fold it in half lengthwise to make a long rectangle. Rub your fingernail along the crease to strengthen the crease.
Now take scissors and make several small cuts along the edge on the side with the fold. You’re basically making a fringe on the side of the paper that you made the thick crease on. Leave about an inch and a half to an inch at the top uncut!
Unfold the paper and wrap the sheet into a cylinder shape so that the fringe you just made is now the center of the lantern. Glue or tape the edges down.
You may now take another strip of paper around 5-6 inches long and glue it to the top of the lantern to form a handle. Make several lanterns and feed a string through these handles for an easy way to decorate for any party!

Looking for more info on decorating? Look at this link about oriental decor.