Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 50

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 50
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 China have had disagreements over political and economic issues. Controversies may arise in the future between these
two countries. Any political or trade controversies between the United States and China could adversely affect the market price of the
Company’s common stock (and CAAS Cayman’s ordinary shares) and its ability to access U.S. capital markets. Political events,
international trade disputes and other business interruptions could harm or disrupt international commerce and the global economy, and
could have a material adverse effect on the Company, its customers and its other business partners.

The Chinese government could change its policies toward private enterprise, which could adversely affect the Company’s business.

The Company’s business is subject to political
and economic uncertainties in China and may be adversely affected by China’s political, economic and social developments. Over
the past several years, the Chinese government has pursued economic reform policies including the encouragement of private economic
activity and greater economic decentralization. The Chinese government may not continue to pursue these policies or may alter them to
the Company’s detriment from time to time. Changes in policies, laws and regulations, or in their interpretation or the imposition
of confiscatory taxation, restrictions on currency conversion, restrictions or prohibitions on dividend payments to stockholders, devaluations
of currency or the nationalization or other expropriation of private enterprises could have a material adverse effect on the Company’s
business. Nationalization or expropriation could result in the total loss of the Company’s investment in China.

Government control of currency conversion and future movements in exchange rates may adversely affect the Company’s operations and financial results.

The Company receives most of its revenues in Chinese
Renminbi, “RMB”. A portion of such revenues will be converted into other currencies to meet the Company’s foreign currency
obligations. Foreign exchange transactions under the Company’s capital account, including principal payments in respect of foreign
currency-denominated obligations, continue to be subject to significant foreign exchange controls and require the approval of the State
Administration of Foreign Exchange in China. These limitations could affect the Company’s ability to obtain foreign exchange through
debt or equity financing, or to obtain foreign exchange for capital expenditures. The Chinese government controls its foreign currency
reserves through restrictions on imports and conversion of RMB into foreign currency. Any significant appreciation of the RMB is likely
to decrease the income of export products and the cash flow of the Company.

Because the Chinese legal system is different from the legal system in United States, the Company and its security holders’ legal protections