老外 (lǎowài) literally means 'old outsider' and is the everyday, informal word Chinese people use for a foreigner — specifically someone who looks non-Chinese, most often used for Westerners. It's not usually meant as an insult; it's closer to a casual, slightly familiar term, the way you might say 'the foreigner' in a neutral-to-friendly tone. You'll hear it constantly in daily life: shopkeepers, taxi drivers, or curious kids might say it when they notice you.

That said, it's informal and a bit blunt, so it's not used in formal writing, news reports, or polite official contexts — there, people use 外国人 (wàiguórén), 'foreign person,' which is neutral and respectful in any setting. 老外 can occasionally feel othering or reductive if said in a mocking tone, but on its own it's rarely intended that way.

Example: 那个老外说中文说得真好! (Nàge lǎowài shuō Zhōngwén shuō de zhēn hǎo!) — 'That foreigner speaks Chinese really well!'

If you're a foreigner living in China, you'll likely be called 老外 often, and most expats just shrug it off or even use it about themselves jokingly.