Even into the 2010s, there was SO much yellowface in Hollywood, and it wasn't that long ago that Blackface was common, too.
Why it was controversial:
Similarly to Johansson, Wolff was a white actor playing an originally Japanese character . In fact, none of its major characters were plaid by Asian actors. IndieWire critic, Hanh Nguyen, about how this affected the story:"This story, like many taken from the most popular anime or manga, has cultural significance to Japan. ... The concept of a death god is very common in Japanese lore, and therefore comes with a set of expectations or rules.
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