Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 63

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 63
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The new CAC rules do not appear to apply to
the Company or its subsidiaries at this time. As of the date of this proxy statement/prospectus, (i) the Company does not hold personal
information of over one million users; (ii) the Company and its subsidiaries have not been informed by any PRC governmental authority
of any requirement that it file for a cybersecurity review; (iii) data processed in the Company’s business does not have a
bearing on national security and may not be classified as core or important data by the PRC governmental authorities; and (iv) none
of the Company and its subsidiaries provides any important data, personal information or sensitive personal data outside the territory
of PRC, therefore, the Company believes it is not required to pass cybersecurity review of CAC. If the Chinese government’s regulation
enhances, our operations may be negatively impacted in a significant way, although, presently, there is no discernible immediate impact.

Uncertainties with respect to the PRC legal system, including uncertainties regarding the enforcement of laws, and changes in policies, laws and regulations in China could adversely affect us.

Our operations in China are governed by the PRC
laws and regulations. We may be adversely affected by the complexity, uncertainties and changes in PRC laws and regulations regarding
foreign investment and manufacturing, which could have a material adverse effect on our business and our ability to operate our business
in China.

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From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. Any administrative and court proceedings in China may be protracted, resulting in substantial
costs and diversion of resources and management attention. Since PRC administrative and court authorities have some discretion in interpreting
and implementing statutory provisions and contractual terms, it may be difficult to evaluate the outcome of administrative and court proceedings
and the level of legal protection we enjoy, than in other legal systems. These uncertainties may impede our ability to enforce contracts
in China and could materially and adversely affect our business and results of operations.

It may be difficult to serve the Company with legal process or enforce judgments against the Company or its management.

Most of the Company’s assets are located
in China, the significant majority of its directors and officers are non-residents of the United States, and all or substantial portions
of the assets of such non-residents are located outside the United States. As a result, it may not be possible to effect service of process