Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 48

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 48
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 economic imbalances. The Chinese government’s macroeconomic policies, even if effected properly, may significantly slow down
China’s economy or cause great social unrest, all of which would have a negative effect on the Company’s business and results
of operations.

The economic, political and social conditions in China could affect the Company’s business.

Most of the Company’s business, assets and
operations are located in China. The economy of China differs from the economies of most developed countries in many respects, including
government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. The economy of China
has been transitioning from a planned economy to a more market-oriented economy. Although the Chinese government has implemented measures
emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets and the establishment
of sound corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the Chinese
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