Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 48

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 48
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government.

In addition, the Chinese government continues
to play a significant role in regulating industry by imposing industrial policies. It also exercises significant control over China’s
economic growth through the allocation of resources, controlling payment of foreign currency-denominated obligations, setting monetary
policy and providing preferential treatment to particular industries or companies. Therefore, the Chinese government’s involvement
in the economy could adversely affect the Company’s business operations, results of operations and/or financial condition.

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Because the Company’s operations are mostly located outside of the United States and are subject to Chinese laws, any change of Chinese laws may adversely affect its business.

Most of the Company’s operations are in
the PRC, which exposes it to risks, such as exchange controls and currency restrictions, currency fluctuations and devaluations, changes
in local economic conditions, changes in Chinese laws and regulations, exposure to possible expropriation or other PRC government actions,
and unsettled political conditions. These factors may have a material adverse effect on the Company’s operations or on its business,
results of operations and financial condition.

The Company’s international expansion plans subject it to risks inherent in doing business internationally.

The Company’s long-term business strategy
relies on the expansion of its international sales outside China by targeting markets, such as the United States and Brazil. Risks affecting
the Company’s international expansion include challenges caused by distance, language and cultural differences, conflicting and
changing laws and regulations, foreign laws, international import and export legislation, trading and investment policies, foreign currency
fluctuations, the burdens of complying with a wide variety of laws and regulations, protectionist laws and business practices that favor
local businesses in some countries, foreign tax consequences, higher costs associated with doing business internationally, restrictions
on the export or import of technology, difficulties in staffing and managing international operations, trade and tariff restrictions,
and variations in tariffs, quotas, taxes and other market barriers. These risks could harm the Company’s international expansion
efforts, which could in turn materially and adversely affect its business, operating results and financial condition.

In addition, under Section 1502 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, the SEC has adopted additional disclosure requirements related to the source of certain
“conflict minerals” for issuers for which such “conflict minerals” are necessary to the functionality or production
of a product manufactured, or contracted to be manufactured, by that issuer. The metals covered by the rules include tin, tantal