Lo Pan wants you to take out the Dragon - hand to hand, if possible is a quest in Fallout 2.
Lo Pan and the Dragon are engaged in a struggle for the very soul of Shi-Town. The Chosen One can tip the balance in either one's favor by killing them. Working for Lo Pan ensures the darkness is prevalent.
After witnessing Lo Pan's defeat in a scripted cutscene after approaching the crossroads at the heart of Shi-Town, the player can talk to either leader to get their bearings. Lo Pan is much less discerning about how his rival is taken out. The player can talk to him in the gym to the southwest.
For Lo Pan to accept the player, they need to agree that the Shi are sheep, then have either Unarmed 125% or to fight six of his men in a test of skill. Completing the martial challenge is worth 8000 experience points and can be done alongside the Dragon's challenge if the player does not accept the quest to kill the Dragon immediately.
Afterwards, the player can choose to either challenge the Dragon to a test of martial skill, fighting the standard line-up of opponents until facing him (no separate experience) or eliminate him with super stimpaks or sneak attacks. Reporting back to Lo Pan is worth 3000 experience points.
Killing Lo Pan by challenging him afterwards does not provide additional experience.
Behind the scenes
The Dragon is a reference to Bruce Lee, a martial arts master who starred in Robert Clouse's 1973 Enter the Dragon and Way/Return of the Dragon. In the latter, Lee ripped out Chuck Norris' chest hair out before killing him.
Lo Pan is named after the villain in the 1986 cult classic Big Trouble in Little China.