'Jiǎn cǎi' literally means 'to cut ribbon' — 'jiǎn' means 'to cut' and 'cǎi' (here meaning 'colored ribbon') refers to the ceremonial red or multicolored ribbon traditionally used in Chinese opening ceremonies. Though 'cǎi' usually means 'color' or 'brilliance', in this fixed expression it specifically denotes the decorative ribbon symbolizing auspiciousness and new beginnings.

This verb describes the formal, symbolic act of cutting a ribbon to officially open a new business, building, exhibition, or public facility. It’s typically performed by dignitaries, executives, or honored guests, often accompanied by photos, speeches, and festive music. The ritual reflects Chinese cultural emphasis on auspicious beginnings and collective celebration. While rooted in physical action, 'jiǎn cǎi' is now used more broadly — even metaphorically — to refer to the official launch or inauguration of any significant venture.