The Politburo wanted white-knight messaging. Remember to them, China is good, and the West is bad. Strictly thinking about how the 'Ministry of Propaganda,' which reports directly to the Politburo, would view it, you always wanted the Chinese character to be a good guy or a hero, not a villain. 'The development team in Beijing felt Shang-Chi was the safer role to promote since he was a 'good guy' and a hero, while The Mandarin was clearly a nemesis to Iron Man.
As Fenton wrote in Feeding the Dragon (via Bleeding Cool): It's our decision as to which.' Shang-Chi was considered the more appropriate choice seeing as how he's a 'good guy.' The Mandarin, of course, is Iron Man's archenemy. 'That would give us a chance to tease a potential character, either The Mandarin or Shang-Chi. YES NO'Assuming we pony up more money, did offer the opportunity to create a teaser at the end of Avengers for the China market,' Fenton claimed.