Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 22

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 22
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 associated with our structure, please refer to “Risk Factors and Caution Regarding
Forward-Looking Statements – Risks Related to Doing Business in China and Other Countries Besides the United States.”

Currently, PRC laws and regulations do not prohibit
direct foreign investment in our operating subsidiaries. Nonetheless, in light of the recent statements and regulatory actions by the
PRC government, such as those related to the promulgation of regulations prohibiting foreign ownership of Chinese companies operating
in certain industries, which are constantly evolving, and anti-monopoly concerns, we may be subject to the risks of uncertainty of any
future actions of the PRC government in this regard, which would likely result in a material change in our operations, including our
ability to continue our existing holding company structure, carry on our current business, accept foreign investments, and offer or continue
to offer securities to our investors, and the resulting adverse change in value to our securities. We may also be subject to penalties
and sanctions imposed by the PRC regulatory agencies, including the China Securities Regulatory Commission, or CSRC, if we fail to comply
with such rules and regulations, which would likely adversely affect the ability of the Company’s securities to continue to
trade on Nasdaq, which would likely cause the value of our securities to significantly decline or become worthless.

Doing Business in China

As a result of our operations in China, the Chinese
government may exert influence over our operations from time to time, which could result in a material change in our operations and/or
the value of our securities. For example, the Chinese government published policies that significantly affected certain industries such
as the education and internet industries, and we cannot rule out the possibility that it will in the future release regulations
or policies regarding any industry that could adversely affect the business, financial condition and results of operations of our company.

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Furthermore, the Chinese government has also indicated
an intent to exert more oversight and control over securities offerings and other capital markets activities that are conducted outside
of China and over foreign investment in China-based companies. Any such action, once taken by the Chinese government, could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to
significantly decline or in extreme cases, become worthless. The Chinese government initiated a series of regulatory actions and statements
to regulate business operations in China, including enforcement actions against illegal activities in the securities market, enhancing
supervision over China-based