Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 58

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 58
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 SEC enforcement actions and are conducting internal and external
investigations into the allegations. It is not clear what effects the sector-wide investigations will have on the Company. If the Company
becomes a subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, the Company will have to
expend significant resources to investigate such allegations and defend the Company. If such allegations were not proven to be baseless,
the Company would be severely hampered and the price of the stock of the Company could decline substantially. If such allegations were
proven to be groundless, the investigation might have significantly distracted the attention of the Company’s management.

Because a majority of our operations are in China, our business is subject to the complex and rapidly evolving laws and regulations there. The Chinese government may exercise significant oversight and discretion over the conduct of our business and may influence our operations from time to time, which could result in a material change in our operations and/or the value of our securities.

As a business operating in China, we are subject
to the laws and regulations of the PRC, which can be complex and evolve rapidly. The PRC government has the power to exercise significant
oversight and discretion over the conduct of our business, and the regulations to which we are subject may change from time to time.
As a result, there remain uncertainties regarding the application, interpretation, and enforcement of new and existing laws and regulations
in the PRC. Compliance with the complex and evolving PRC laws, regulations, and regulatory statements may be costly, and such compliance
or any associated inquiries or investigations or any other government actions may:

| · | Delay                                                                                      
 or impede our development,                                                                 |
| · | Result                                                                                     
 in negative publicity or increase our operating costs,                                     |
| · | Require                                                                                    
 significant management time and attention, and                                             |
| · | Subject                                                                                    
 us to remedies, administrative penalties and even criminal liabilities that may harm our   
 business, including fines assessed for our current or historical operations, or demands or 
 orders that we modify or even cease our business practices.                                |

The promulgation of new laws or regulations, or
the new interpretation of existing laws and regulations, that restrict or otherwise unfavorably impact the ability or manner in which
we conduct our business and could require us to change certain aspects of our business to ensure compliance, could decrease demand for
our products, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject us