Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 84

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 84
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 not sufficiently
cover all aspects of economic activities in China. In particular, because these laws and regulations are relatively new, and because
of the limited volume of published decisions and their nonbinding nature, the interpretation and enforcement of these laws and regulations
involve uncertainties. In addition, the PRC legal system is based in part on government policies and internal rules (some of which are
not published on a timely basis or at all) that may have a retroactive effect. As a result, we may not be aware of our violation of these
policies and rules until sometime after the violation. In addition, any litigation in China may be protracted and result in substantial
costs and diversion of resources and management attention.

Changes
in China’s economic, political or social conditions or government policies could have a material adverse effect on the business,
results of operations and financial condition of a Chinese target company we may pursue as an acquisition target in the future.

If
our initial business combination target is a company with operations in China, its business, prospects, financial condition and results
of operations may be influenced to a significant degree by political, economic and social conditions in China generally and by continued
economic growth in China as a whole.

The
Chinese economy differs from the economies of most developed countries in many respects, including the amount of government involvement,
level of development, growth rate, control of foreign exchange and allocation of resources. To date, the government still owns a substantial
portion of productive assets in China. Although the PRC 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 improved corporate governance in
business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition, the PRC government
continues to play a significant role in regulating industry development by imposing industrial policies. The PRC government also exercises
significant control over China’s economic growth through allocating resources, controlling payment of foreign currency-denominated
obligations, setting monetary policy, and providing preferential treatment to particular industries or companies. Given the PRC government’s
significant oversight and discretion over the conduct of business of any China-based company that we may target for an initial business
combination, the PRC government may intervene or influence the operations of our target at any time, which could result in a material
change in our operations and/or value of the securities we are registering for sale.

While
the Chinese economy has experienced significant growth over past decades