Ah yes, this phrase reminds of the deer in headlights look that I love so much.
Tengo el pelo chino
I have Chinese hair
Chino means Chinese, and what it is has to do with hair is beyond me. Despite my ignorance of the relationship between hair and Chinese in Spanish, "El pelo chino" is a colloquial way of saying you have curly hair.
By the way, pelo chino is a very Mexican way of saying someone has curly hair.
A more standard way of saying this would be:
Tengo el pelo rizado
I have curly hair
Since we're on the subject of hair, here are a couple of other interesting things about hair.
Pelo is the word you will almost exclusively use for hair, although there are a few other words (and distinctions) we need to know.
Cabello is actually the hair on your head, and the only place cabello exists. Vello referes to hair anywhere else on your body, such as vello facial - facial har and vello púbico - pubic hair.
Getting back to cabello, or pelo, you can wear your hair down, suelta (loose) or in cola de caballo (pony tail), cola for short.
One last thing...
After a long day of practicing your Spanish, you may need to "suéltate el pelo" (let your hair down), which has the same meaning in Spanish as it does in English, which in this context has nothing at all to do with hair, but instead relaxing and having a good time.
Well, that's it.
¡Ojala que te sirva!
I hope this helps!