Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 222

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 222
---
 layer of regulatory review. Currently, there is significant uncertainty as to the implication of the Security
Review Regulations. Neither the Ministry of Commerce nor other PRC government agencies have issued any detailed rules for the implementation
of the Security Review Regulations. If, for example, our potential initial business combination is with a target company operating in
the PRC in any of the sensitive sectors identified above, the transaction will be subject to the Security Review Regulations, and we
may have to spend additional resources and incur additional time to complete any such acquisition. We may also be prevented from pursuing
certain investment opportunities if the PRC government considers that the potential investments will result in a significant national
security issue.

There
are uncertainties in the interpretation and enforcement of PRC laws and regulations that could limit the legal protections available
to you and us.

Our
sponsor is predominantly controlled by a Macau national, and we may seek to acquire a company that is based in China in an initial business
combination. The uncertainties in the interpretation and enforcement of PRC laws, rules and regulations would apply to us if we were
to acquire a company that is based in China, regardless of whether we have a direct ownership structure post-business combination. Because
of such ties to China, we may be governed by PRC laws and regulations. PRC companies and variable interest entities are generally subject
to laws and regulations applicable to foreign investments in China and, in particular, laws and regulations applicable to wholly foreign-owned
enterprises. The PRC legal system is based on statutes. Prior court decisions may be cited for reference but have limited precedential
value.

51

Since
1979, PRC legislation and regulations have significantly enhanced the protections afforded to various forms of foreign investments in
China. However, China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently
cover all aspects of economic activities in China. In particular, because these laws and regulations are relatively new, and because
of the limited volume of published decisions and their nonbinding nature, the interpretation and enforcement of these laws and regulations
involve uncertainties. In addition, the PRC legal system is based in part on government policies and internal rules (some of which are
not published on a timely basis or at all) that may have a retroactive effect. As a result, we may not be aware of our violation of these
policies and rules until sometime after the violation. In addition, any litigation in China may be protracted and result in substantial