Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 56

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 56
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 of resources, monetary and tax policies, and a host of other government policies
such as those that encourage or restrict investment in certain industries by foreign investors, control the exchange between the Renminbi
and foreign currencies, and regulate the growth of the general or specific market. While the Chinese economy has experienced significant
growth in the past 30 years, growth has been uneven, both geographically and among various sectors of the economy. Furthermore, the current
global economic crisis is adversely affecting economies throughout the world. As the PRC economy has become increasingly linked with the
global economy, China is affected in various respects by downturns and recessions of major economies around the world. The various economic
and policy measures enacted by the PRC government to forestall economic downturns or bolster China’s economic growth could materially
affect our business. Any adverse changes in the economic conditions in China, in policies of the PRC government or in laws and regulations
in China could have a material adverse effect on the overall economic growth of China and market demand for our outsourcing services.
Such developments could adversely affect our businesses, lead to reduction in demand for our services and adversely affect our competitive
position.

Uncertainties with respect to the PRC legal
system, including uncertainties regarding the interpretation and enforcement of laws, and sudden or unexpected changes
in laws and regulations in China could adversely affect us and limit the legal protections available to you and us.

We conduct our business primarily
through our subsidiaries in China. Our operations in China are governed by the laws and regulations of China. Our subsidiaries are generally
subject to laws and regulations applicable to foreign investments in China. As a civil law jurisdiction, the legal system of China is
based on written statutes. Compared to common law systems, prior court decisions may be cited for reference but have limited precedential
value.

Changes in laws, regulations
and policies in mainland China and uncertainties with respect to the interpretation and enforcement of the laws, regulations and policies
in mainland China and the fact that rules and regulations in mainland China can change quickly with little advance notice. Rules and regulations
in China are subject to changes by the relevant authorities. Sometimes such authorities will publish draft of the revisions to existing
rules and regulations for public comments and consultation before enacting such revisions. But such consultations are done on case-by-case
basis and we otherwise lack public channels to learn the extents of the revisions beforehand, in which case we might have limited time
to ensure timely compliance upon the enactment of such revisions. Such action could