How out of date was the outfit in the 1930s when the picture was drawn? I don't really know what terms to look up to research that myself so any suggestions would be appreciated.
Anyways, IMO the white character's coloration is just as exaggerated as the Chinese character's. "White" people aren't actually 0xFFFFFF. The white character's physically improbable nose length and hair situation are also reminiscent of racist caricatures of white people.
> "How out of date was the outfit in the 1930s when the picture was drawn?"
It's kind of a stereotype of rural farmers in China. If you do a Google image search for "rural Chinese farmers" or even "Chinese peasants" you can still see the same type of grass hat being worn today. Then remember that in the 1930s the industrial revolution hadn't reached China yet; it was very much an agrarian society (much like the US a century before then) and nearly everybody was a farmer like that.
Is Dr. Seuss's cartoon offensive? Meh, it just feels dated and out of touch with what modern China has achieved, culturally and economically. I personally don't find it any worse a stereotype than what one sees today if they do a Google Image Search for "Texan", "Frenchman", or "Englishman" but YMMV.
(Actually, the GIS result for "Frenchman" is rather amusing; perhaps Google owes France an apology for being "offensive".)
> It's kind of a stereotype of rural farmers in China.
Is it, though? The wardrobe seems a fair bit elegant for some rural farmer; I'd expect a straw hat and simpler garb.
I ain't familiar with Chinese formal wear from that time period, but if I were a child in the 1930's trying to imagine a formally-dressed Chinese man (i.e. the literary context of that depiction) that's probably what I'd imagine. The white rice contributes to that perception of wealth, too; from what I understand, white rice is a symbol of affluence in a lot of Asian cultures, and brown rice a symbol of peasantry (see also: the Imperial Japanese Navy's experience with thiamine deficiency because sailors subsisted themselves entirely on "fancy" white rice instead of brown: https://www.atlasobscura.com/articles/japanese-curry-history). The Chinese man's presentation alongside a formally-dressed magician contributes further to that interpretation.
Anyways, IMO the white character's coloration is just as exaggerated as the Chinese character's. "White" people aren't actually 0xFFFFFF. The white character's physically improbable nose length and hair situation are also reminiscent of racist caricatures of white people.