I think their bigger concern would probably be not having him come off as the old "Yellow Peril/Fu Manchu" villain stereotype. I'm sure Iron Man 3 will make him more tech-based to fit into the world they've established. I can easily see them changing the Mandarin's ethnicity, too.
They probably won't even call him Mandarin in the movie. Ivan was never called Whiplash in IM2, so they'll probably call Mandarin by the name Gene Khan, which would be fine. I just hope they pick a great asian actor for the role.
I don't see the point of making the rings tech-based. Iron Men is going to be in a movie with Thor, they might as well use magic.