For one thing, "THE Mandarin" is kind of a racist caricature. And that's not me talking; that's Shane Black, the co-writer/director of "Iron Man 3," who described The Mandarin with those very words way back in 2011 at an appearance at Long Beach Comic-Con. The issues around The Mandarin as he was conceived in 1964 are clearly outlined in an article at io9 entitled "How Big is 'Iron Man 3''s 'Fu Manchu' Problem?" Here's comic book writer Marjorie M. Liu succinctly summarizing the character:
"The Mandarin is pretty much a direct descendent of the Fu Manchu yellow peril caricature -- at best Orientalist, at worst, racist. The diabolic Asiatic is a hoary Hollywood staple -- one of many stereotypes that Asian Americana have long had to endure -- whether it's the Fu Manchu, the Kung Fu master, the Dragon Lady, or the bucktooth nerd."
So to make a "faithful" recreation of "THE Mandarin" is to traffic in some really nasty stereotypes. Yes, I know some very talented recent writers have tried to modernize and reinvent the character in the pages of Marvel Comics. Some of have succeeded (others, I'd argue, haven't). But either way, by doing "THE Mandarin" you are courting, if not outright endorsing, cultural insensitivity. I think "Iron Man 3" rather brilliantly evades that minefield by using it as the fuel for satire; revealing the Kingsley Mandarin's mish-mosh of Orientalist imagery as a construction designed to play into ignorant people's fears. Black suggests we should be far more worried about the well-dressed, amoral CEO than the vaguely defined "Other" of so many bad pieces of pop culture.