Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 47

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 47
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. Alternatively, the
Company could be forced to refinance or renegotiate the terms and conditions of the Company’s secured credit facilities, including
the interest rates, financial and restrictive covenants and security requirements of the secured credit facilities, on terms that may
be significantly less favorable to the Company.

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Risks Related to Doing Business in China and Other Countries besides the United States

The Company may face a severe operating environment during times of economic recession.

The sales volume of the Company’s core products
is largely influenced by the demand for its customers’ end products which are mostly sold in the Chinese markets. Future economic
crises, either within China or without, may lead to a drastic drop in demand for the Company’s products.

The Chinese government’s macroeconomic policies could have a negative effect on the Company’s business and results of operations.

The Chinese government has implemented various
measures from time to time to adjust the rate of economic growth in the PRC. Some of these measures may have a negative effect on the
Company over the short or long term. For example, in past years, to cope with high inflation and economic imbalances, the Chinese government
has tightened monetary policy and implemented floating exchange rate policy. In addition, in order to alleviate some of the effects of
unbalanced growth and social discontent, the Chinese government has enacted a series of social programs and anti-inflationary measures.
These, in turn, have increased the costs on the financial and manufacturing sectors, without having alleviated the effects of high inflation
and 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