Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 63

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 63
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 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
within the United States upon such persons to originate an action in the United States. Moreover, there is uncertainty that the courts
of China would enforce judgments of U.S. courts against the Company, its directors or officers based on the civil liability provisions
of the securities laws of the United States or any state, or an original action brought in China based upon the securities laws of the
United States or any state.

The recognition and enforcement of foreign judgments
are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements
of the PRC Civil Procedures Law and other applicable laws, regulations, and interpretations based either on treaties between China and
the country where the judgment is made