Is it permissible to go out to watch fireworks displayed by non-Muslims on the occasion of their holidays, such as the Chinese New Year, given the concern that they might perceive this as participation in their celebrations? And is it permissible to watch them in a deserted place during these holidays?

It is not permissible for a Muslim to participate in the celebrations of non-Muslims.

The evidence for this is the Almighty's saying: (And those who do not witness falsehood, and when they pass by idle talk, they pass by with dignity), and this means not being present at or witnessing falsehood.

The Noble Hadith indicates that increasing the numbers of those who commit falsehood—even without active participation—exposes a person to punishment; therefore, one must stay away from them.

As for merely seeing fireworks from afar, or through media, its prohibition is not decreed, but refraining from it is more appropriate.