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A drive that will play DVD movies but not Xbox 360 game discs has been
set up incorrectly at the factory. The only solution is to return the
Xbox 360 and specifically note the problem so the drive can be repaired
The problem you are facing is of a copied Xbox 360 game you are probably trying to play on a Genuine Xbox 360, these discs are read as a movie disk and it shows as "Play DVD".
When you try to play such discs, it would give you dvd media control bar on the bottom and the message in chinese letters is actually a message asking you to insert this disc in a Xbox 360, which is actually a Modded Xbox 360 that is required
You will get this error when your laser is in need of replacing. The other message you will get is open tray. If your system will play regular movie dvd's but not games then replace the laser. You can find them pretty cheap on ebay.
This is 99% always the case when your dvd drive is going out. You can find a replacement on ebay for under $15. Video tutorials can be found on youtube just by typing "xbox 360 laser replacement" Replace the laser and you won't have this problem anymore.