Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 57

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 57
---
 event of such an attack, disruption in service from the Company’s utility providers could disrupt the Company’s manufacturing
operations which rely on a continuous source of power, electrical, gas, etc.

The Company’s business is subject to natural disasters, health epidemics and other catastrophic incidents.

China has in the past experienced significant natural
disasters, including earthquakes, extreme weather conditions, as well as health scares related to epidemic diseases, and any similar event
could materially impact the Company’s business in the future. If a disaster or other disruption were to occur in the future that
affects the regions where the Company operates its business, the Company’s operations could be materially and adversely affected
due to loss of personnel and damage to property. Even if the Company is not directly affected, such a disaster or disruption could affect
the operations or financial conditions of the Company’s customers, which could harm the Company’s results of operations.

The recent government interference into business activities of U.S.-listed Chinese companies may negatively impact our operations.

Certain PRC regulatory authorities issued Opinions
on Strictly Cracking Down on Illegal Securities Activities, made available to the public on July 6, 2021, which emphasized their
goal to strengthen the cross-border regulatory collaboration, to improve relevant laws and regulations on data security, cross-border
data transmission, and confidential information management, and provided that efforts will be made to revise the regulations on strengthening
the confidentiality and file management relating to the offering and listing of securities overseas, to implement the responsibility on
information security of overseas listed companies, and to strengthen the standardized management of cross-border information provision
mechanisms and procedures. China intends to improve regulation of cross-border data flows and security, crack down on illegal activity
in the securities market and punish fraudulent securities issuance, market manipulation and insider trading. China will also check sources
of funding for securities investment and control leverage ratios. The CAC has also opened a cyber security probe into several U.S.-listed
tech companies focusing on anti-monopoly, financial technology regulation and more recently, with the passage of the Data Security Law,
how companies collect, store, process and transfer data. If the Chinese government’s interference expands, our operations may be
negatively impacted in a significant way, although, presently, there is no discernible immediate impact.

<div align='center'>33</div>

If the Company becomes directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve