Okay kiddo, so "laowai" is a word in Chinese that means "foreigner." You know how we have different words for different things, like "cat" or "dog"? Well, in China, they have a word for people who are from another country, and that word is "laowai."
The reason why it's important to understand this word is because in China, people might use it to refer to someone who is not from China. So if you ever hear someone use the word "laowai" around you in China, they might be talking about you!
But don't worry, it's not necessarily a bad thing. It's just a way for people to identify someone who is from another country. And sometimes, people might use it as a way to start a conversation with a foreigner and practice their English.
So that's what "laowai" means, kiddo: it's a word in Chinese that means "foreigner."