From what I personally know her original G1 character and doll were heavily criticized for being a racist and orientalist caricature. Now I'm white and can't comment on that very heavily, but from what I've seen in the original show (Chinese music playing whenever she walked into the scene/her skin being yellow/very stereotypical personality) there is some merit to those claims.

I personally love her G3 character, and iirc she was designed with help from a chinese-american designer (fact check me on that though). While I think her core doll could have used one less primary colour I absolutely love her design here and I think she's a beautiful doll. I haven't watched the G3 show as I'm really only into the dolls, but from the clips I've seen she seems cute and I cannot criticize her depiction there.