Inner Mongolia already uses the traditional script so if anything this news is indicative of increased Chinese influence and decreased Russian influence in Mongolia.

China should be happy at this, if anything, they're abandoning the Russian style.

Poor Mongolia, it aligned with USSR and now has to deal with China's rise as well. Long term prognosis is not good, as a nice chunk of "Mongolia" is already within China. Can't change geography

Mongolian script is already on every piece of Chinese legal tender while Cyrillic is not. So it's quite the reverse.