Again, why do we care? Because Chinese nationals and more importantly, Chinese businesses will likely once again become incommunicado. The government will have stricter control over what can and can not come into the country, even over the internet, which as their recent battle with Google indicates, is already a concern in China. It would also represent a loss to the business community because they would no longer be able to sell software products to China, which despite IPR problems, does still generate revenue. China would essentially become even less dependent on imports than it already is, which has real consequences for the American capital account defecit, raising the question, "If China no longer has to buy what we're selling, what are we going to do?"
How likely are they going to be able to implement this new language? No one knows. Other initiatives have existed elsewhere, particularly in France, but most of those fell through due in no small part to the need for their computers to talk to American computers to have access to that market. Hence, no one really took them seriously. China, however, is a horse of a different color in that sense because it's got a stronger hold on the American markets. We will buy their cheap goods and try to sell them ours, so long as we can make a profit. Plus, China has stricter control over its citizenry than other individuals from other places, so the possibility that China will develop its own internet is all the more real. However, no one really knows what's going on over there on this issue, but it's still an interesting question.