It’s been widely speculated that the Mandarin will not actually be Chinese in Iron Man 3. He will be presented as more of an international terrorist, and while he has ten rings, the rings might be for show only and lack power.
Kevin Feige said, "We felt there was leeway to explore the Mandarin in a way that hasn't been explored before. We found we couldn't point to any sort of definitive Mandarin story in the comics — but if you print this, I'm sure a million fans will point to a specific story — so as we've done with many of the films, we did an amalgamation. The Mandarin is relentless: he's a non-stop threat, and you've seen that in the first teaser trailer when Tony Stark's house tumbles into the sea. He doesn't mess around, this guy."
Iron Man 3 is set to be released in theaters on May 3, 2013.