Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 80

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 80
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vested entities that operate in industries
deemed to be either “restricted” or “prohibited” in the Negative List. The Foreign Investment Law provides that
foreign investors shall not invest in the “prohibited” industries and shall meet certain requirements as stipulated under
the Negative List for investing in “restricted” industries.

In addition, the Foreign Investment Law also provides
several protective rules and principles for foreign investors and their investments in the PRC, including, among others, (i) that
local governments shall abide by their commitments to the foreign investors; (ii) FIEs are allowed to issue stock and corporate bonds;
except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made
in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; (iii) mandatory technology
transfer is prohibited; and (iv) the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees
of intellectual property rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors
within the PRC, may be freely remitted inward and outward in RMB or a foreign currency. Also, foreign investors or FIEs should assume
legal liabilities for failing to report investment information in accordance with the requirements. Furthermore, the Foreign Investment
Law provides that FIEs established prior to the effectiveness of the Foreign Investment Law may maintain their legal form and structure
of corporate governance within five years after January 1, 2020.

On December 26, 2019, the State Council further
issued the Regulation for Implementation the Foreign Investment Law of the PRC, which came into effect on January 1, 2020, and replaced
the Regulations on Implementing the PRC Equity Joint Venture Law, Provisional Regulations on the Duration of PRC Equity Joint Venture
Law, the Regulations on Implementing the PRC Cooperative Joint Venture Law, and the Regulations on Implementing the PRC Wholly Foreign-owned
Enterprise Law. The Regulation for Implementing the Foreign Investment Law of the PRC restates certain principles of the Foreign Investment
Law and further provides that, among others, (i) if an FIE established prior to the effective date of the Foreign Investment Law
fails to adjust its legal form or governance structure to comply with the provisions of the Companies Law of the PRC or the Partnership
Enterprises Law of the PRC, as applicable, and complete amendment registration before January