Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 78

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 78
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 the People’s Republic of China, which was newly amended in June 2021. The Production Safety Law clarifies that
enterprises should strengthen safety production management, establish and improve all-employee safety production responsibility systems
and safety production rules and regulations, increase safety production funds, materials, technology, and staff input, and improve
safe production conditions. A system of investigating the responsibility for production safety accidents shall be implemented.

Regulations on Product Liability

Manufacturers and vendors of
defective products in the PRC may incur liability for losses and injuries caused by such products. The Civil Code of the People’s
Republic of China was adopted in May 2020 and has become effective since January 1, 2021. According to the Civil Code of the
People’s Republic of China, manufacturers or retailers of defective products that cause property damage or physical injury to any
person will be subject to civil liability.

In 1993, the Law of the PRC on the Protection
of the Rights and Interests of Consumers (as amended in 2009 and 2013), was enacted to protect the legitimate rights and interests of
end-users and consumers and to strengthen the supervision and control of the quality of products. If our products are defective and cause
any personal injuries or damage to assets, our customers have the right to claim compensation from us.

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Regulation on Environmental Protection

The Environmental Protection Law of the People’s
Republic of China was revised and adopted on April 24, 2014, and came into force on January 1, 2015. The law stipulates that
enterprises, institutions and other producers and operators shall prevent and reduce environmental pollution and ecological damage and
shall be liable for the damage caused. Besides, enterprises should adopt processes and equipment with high resource utilization rate
and low pollutant discharge, as well as comprehensive utilization technology of waste and harmless treatment technology of pollutants,
so as to reduce the generation of pollutants. Enterprises, institutions and other producers and operators who illegally discharge pollutants
will be fined by the environmental protection authorities.

Regulations on Foreign Investment in China

The establishment, operation, and management of
companies in China are governed by the PRC Company Law, as amended in 2004, 2005, 2013, 2018 and 2024. The PRC Company Law applies to
both PRC domestic companies and foreign-invested companies. The direct or indirect investment activities of a foreign investor shall