Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 123

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 123
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Risks Related to the Redomicile Merger.”

There are certain disadvantages that accompany
redomicile in the Cayman Islands, including:

| · | the Cayman Islands has a different body of securities laws and corporate                                                                          
 laws as compared to the United States and may provide significantly less protection to investors;                                                 |
| · | Cayman Islands companies may not have standing to sue before the federal                                                                          
 courts of the United States;                                                                                                                      |
| · | CAAS Cayman’s constitutional documents do not contain provisions requiring                                                                        
 that disputes, including those arising under the securities laws of the United States or, between it and its officers, directors and shareholders 
 be arbitrated; and                                                                                                                                |
| · | CAAS Cayman will continue to be treated as a U.S. corporation for U.S. federal                                                                    
 income tax purposes.                                                                                                                              |

CAAS Cayman’s corporate affairs are governed
by the Amended CAAS Cayman Articles, as amended and restated from time to time, the Companies Act and the common law of the Cayman Islands.
The rights of shareholders to take action against the directors and officers of CAAS Cayman, actions by minority shareholders and the
fiduciary duties of CAAS Cayman’s directors to CAAS Cayman under Cayman Islands law are to a large extent governed by the common
law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the
Cayman Islands, as well as from English common law, which has persuasive, but not binding, authority on a court in the Cayman Islands.
The rights of our shareholders and the fiduciary duties of our directors, although clearly established under Cayman Islands law, are not
specifically prescribed in statute or a particular document in the same way that they are in certain statutes or judicial precedent in
some jurisdictions in the United States.

Additionally, a significant portion of our operations
are conducted in the PRC, and a significant portion of our assets are located in the PRC. After the Redomicile Merger, the significant
majority of CAAS Cayman’s directors and officers will reside outside of the United States, and a majority of such persons’
assets are or may be located outside the United States. As a result, it may be difficult for you to effect service of process within the
United States upon CAAS Cayman or such persons, or to enforce against them in courts of the United States,