Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 23

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 23
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 companies listed outside of China using the variable interest entity structure, adopting new measures to
extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. For example, on July 6, 2021,
the relevant PRC government authorities issued the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with
Law. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas
listings by China-based companies and proposed to take measures, such as promoting the construction of relevant regulatory systems to
deal with the risks and incidents faced by China-based overseas-listed companies.

The Chinese government may further promulgate
relevant laws, rules and regulations that may impose additional and significant obligations and liabilities on overseas listed Chinese
companies regarding data security, cross-border data flow, anti-monopoly and unfair competition, and compliance with China’s securities
laws. It is uncertain whether or how these new laws, rules and regulations and the interpretation and implementation thereof may
affect us, but among other things, our ability to obtain external financing through the issuance of equity securities in the United States
or other markets could be negatively affected, and as a result, the trading prices of our securities could significantly decline or become
worthless. For a detailed description of risks related to our doing business in China, see “Risk Factors and Caution Regarding
Forward-Looking Statements - Risks Related to Doing Business in China and Other Countries besides the United States.”

Permissions Required from the PRC Authorities for Our Operations

We conduct our business primarily through our
subsidiary Genesis, which owns interests in eight Sino-joint ventures and seven wholly owned subsidiaries in the PRC. Our operations
in China are governed by PRC laws and regulations. As of the date of this proxy statement/prospectus, these entities have obtained the
requisite licenses and permits from the PRC government authorities that are material for their business operations, including, among
others, certain business licenses, approvals for the establishment of enterprises with foreign investment, approvals for overseas direct
investment and environmental and occupational safety and health approvals. However, given the uncertainties of interpretation and implementation
of relevant laws and regulations and the enforcement practice by relevant government authorities, we may be required to obtain additional
licenses, permits, filings or approvals for the operation of our businesses in the future.

On February 17, 2023, the CSRC promulgated
the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic