Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 64

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 64
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 or on principles of reciprocity between jurisdictions. China does not have any treaties or other
forms of reciprocity with the United States that provide for the reciprocal recognition and enforcement of foreign judgments. In addition,
according to the PRC Civil Procedures Law, the PRC courts will not enforce a foreign judgment against us or our director and officers
if they decide that the judgment violates the basic principles of PRC laws or national sovereignty, security or public interest. As a
result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States.

Changes in political, business, economic and trade relations between the United States and China may have a material adverse impact on our business, results of operations and financial condition.

We cannot predict the possible changes in the
economic, regulatory, social and political environment in the United States and China, nor can we predict their potential impact on political,
economic and trade relations between the United States and China and on our business.

The United States and China have imposed new or
higher tariffs on goods imported from each other, including tariff increases announced by both countries in early 2025. If the United
States or China continues imposing such tariffs, or if additional tariffs or trade restrictions are implemented by the United States
or by China, the resulting trade barriers could have a significant adverse impact on our business, including our sales to American customers.
The adoption and expansion of tariffs, quotas and embargoes, sanctions, the occurrence of a trade war, or other governmental action related
to tariffs or trade agreements or policies, has the potential to adversely impact our sales to American customers, our costs, our suppliers
and the world economy in general, which in turn could have a material adverse effect on our business, results of operations and financial
condition.

Additionally, China has enacted laws and regulations
to respond to foreign sanctions and exterritorial measures. Changes in the laws and regulations of China may have a significant impact
on our business, results of operations and financial condition. We cannot foresee whether and how developments in similar policy actions
or any other policy actions taken by the U.S. or Chinese government will impact our business and financial performance.

Furthermore, the risks and uncertainties associated
with U.S.-China political, business, economic and trade relations may negatively impact investor sentiment towards China-based companies
listed in the U.S., which could in turn adversely affect the demand, price and trading volume of our shares.

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