Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 150

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 150
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<div align='center'>98

ENFORCEABILITY OF CIVIL LIABILITIES</div>

CAAS Cayman is incorporated in the Cayman Islands
because of certain benefits associated with being a Cayman Islands company, such as political and economic stability, an effective judicial
system, a favorable tax system, the absence of foreign exchange control or currency restrictions and the availability of professional
and support services. However, the Cayman Islands has a less developed body of securities laws as compared to the United States and provides
less protection for investors. In addition, Cayman Islands companies do not have standing to sue before the federal courts of the United
States.

A majority portion of CAAS Cayman’s assets
are located outside the United States. In addition, the significant majority of CAAS Cayman’s directors and officers are nationals
or residents of jurisdictions other than the United States and all or a majority portion of their assets are located outside the United
States. As a result, it may be difficult for investors to effect service of process within the United States upon CAAS Cayman or these
persons, or to bring an action against CAAS Cayman or against these persons in the United States, in the event that you believe that
your rights have been infringed under the securities laws of the United States or any state in the United States. It may also be difficult
for you to enforce in U.S. courts judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities
laws against CAAS Cayman and its officers and directors.

Maples and Calder (Hong Kong) LLP, our counsel
as to Cayman Islands law, has advised us that there is uncertainty as to whether the courts of the Cayman Islands would (1) recognize
or enforce judgments of U.S. courts obtained against CAAS Cayman or its directors or officers, predicated upon the civil liability provisions
of the securities laws of the United States or any state in the United States, or (2) entertain original actions brought in the
Cayman Islands against CAAS Cayman or its directors or officers, predicated upon the securities laws of the United States or any state
in the United States.

Maples and Calder (Hong Kong) LLP has informed
us that although there is no statutory enforcement in the Cayman Islands of judgments obtained in the federal or state courts of the
United States (and the Cayman Islands are not a party to any treaties for the reciprocal enforcement or recognition