This is not good news for U.S. inflation, which is not good news for long-term interest rates, which is not good news for the Fed's efforts to avoid/get out of a recession. Cheap Chinese imports have kept U.S. inflation low for 10 years. If import prices start rising substantially, so could American inflation. From Reuters:

BEIJING (Reuters) - Chinese consumer inflation rate surged in January to an 11-year high of 7.1 percent and looks set to rise further, cementing expectations that Beijing will stick to a tight monetary policy despite softening economic growth.

Many economists said inflation was likely to intensify, even as the impact of recent fierce weather fades, because of rapid money growth and rising raw material costs that have not yet been passed on to the consumer.

Mounting popular concern over inflation poses a stiff policy challenge for China's leaders, who want to use the Olympic Games in August to showcase Beijing's economic stability.

"The acceleration in money and credit growth in January suggests that inflation is likely to have further legs to run," Hong Liang and Yu Song, economists with Goldman Sachs in Hong Kong, said in a note to clients.