The Chinese calculate age differently than Westerners do. They believe that when you are born, you cannot be zero years old, so at birth, you are already one. Then, after the Chinese New Year, you add another year! So if you are born in the second half of the year according to the solar calendar, your Chinese age would be two years older than your actual age.
For example, our son was born in December. In the Chinese tradition, he was one when he was born. But in February, after the Chinese New Year arrived, he was already two, even though he was barely two months old.
This system is often confusing, even for our Chinese friends, so people typically just ask what your Chinese zodiac sign is and use it to calculate your age. There are twelve zodiac signs, each lasting one year before the whole cycle repeats again. When someone tells you their zodiac sign, you can quickly figure out, based on his approximate age, what year he was born and how old he is. It is also a polite way to find out someone's age without asking it directly.
The twelve Chinese zodiac signs are: rat, ox, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog, and pig. People commonly associate each sign with a specific personality. Rat likes to snack; ox works hard; tiger is passionate; rabbit is sensitive; dragon is powerful; snake is the lesser dragon; horse is righteous; goat is a lucky sign for men; monkey is clever; rooster is proud; dog is loyal; and pig is the luckiest sign of all.
(selected from 101 Stories for Foreigners to Understand Chinese People by Yi S. Ellis and Bryan D. Ellis, published by China Intercontinental Press in 2012)