Wonder Woman was a WWII propagandist, and racial cariactures of the Japanese, German, and Italians were just part of the job. From our viewpoint fifty years later, this may seem unpardonable or at least in poor taste. But remember that the Axis nations made their "racial superiority" a crux of their propaganda; we should not be surprised that jabs of "racial inferiority" were used as a counterweapon. All's fair in love and war -- and those are what Wonder Woman was about.
I make that point because in creating Egg Fu, the Madman Bob Kanigher was trying to return Wonder Woman to her roots and revivify her title. Without WWII as her milieu, Wonder Woman had floundered. Her original mission of showing that woman's creative power of love was greater than man's destructive power of the sword was the vision of her creator, William Moulton Marston. He, of course, had to be strictly monitored by editors because his principal method of demonstrating his vision was through bondage and discipline scenes. So in the post-war years, a purposeless, pointless Wonder Woman had paled into "My Little Pony" stories, a wan copy of the Superman Family; if you've never read a "Wonder-Tot" story, then thank Hera.
Madman Bob decided he wanted to return Diana to her pre-war vibe. He canned all the "Wonder Family" crap and tried to pit Diana against zany villains in a setting of international politics. Of course, he also had her kidnapped by a talking gorilla from outer space, but that's another story.
Anyway, replacing the Axis's Japanese & Germans with the contemporary "foe" of the Communist Chinese, he created a villain that he hoped was in the style of the Golden Age Wonder Woman: Egg Fu. Now, remember, Kanigher is the man who created Dr. Domino, the greatest of all object-headed villains. In that context, an evil Humpty Dumpty like Egg Fu doesn't seem that strange. Okay, okay-- it does.
He did other things, like bring back the Cheetah, Paula Von Gunther, Minister Blizzard, the Kangas. Take a look at the covers, and note the repeated mentions of "the Golden Age". Kanigher was trying to begin "a new Golden Age of Villainy". Egg Fu was not Bob's single best decision; he later regretted it publicly. Gotta hand it to him, though: Egg Fu surely does make an impression. He's a great visual. I'm Sinophile, and I think E.F. is freakin' hilarious. I could do without the accent though, particularly since it's Japanese. I hate when people sclew that up.
Little known fact: if Egg Fu ever appears in the same panel with Etta Candy, the world will end. Heeee-ho! + Woo-woo! = Anti-Life.
Before anyone asks: no, they never really explained exactly what Egg Fu was. He simply was. Heee-ho! John Byrne, a person of confidence, even did his own version of Egg Fu (Wonder Woman 128-129), as an evil computer from the Fourth World. Points for guts, John. But I don't think that's the last we've seen of Egg Fu. Do you?