Many Japanese words are used as loanwords in modern day Chinese.
Is rucksack a foreign word, or Engrish?
Hey, did you know that there's kanji for the word tobacco even though it’s a loanword?
You know the word 外来 to mean "imported." So, combine that with the kanji for language and you have an imported word, aka a borrowed word. There are a lot of these in Japanese, which makes this word important. Almost everything in katakana is a 外来語, in fact.
This is a jukugo word, which usually means on'yomi readings from the kanji. If you know the readings of your kanji you'll know how to read this as well.