Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 139

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 139
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 tax treaty).

The Company does not believe that it has been,
and CAAS Cayman does not believe that it is and does not anticipate becoming, a “United States real property holding corporation”
for U.S. federal income tax purposes.

Foreign Account Tax Compliance Act

Under Sections 1471 through 1474 of the Code (such
Sections commonly referred to as “FATCA”), a 30% United States federal withholding tax may apply to any dividends paid on
CAAS Cayman ordinary shares to a “foreign financial institution” (as specifically defined in the Code), unless such foreign
financial institution (i) enters into an agreement with the Treasury to report, on an annual basis, information with respect to shares
in, and accounts maintained by, the institution held by certain U.S. persons and by certain non-U.S. entities that are wholly or partially
owned by U.S. persons and to withhold on certain payments, or (ii) if required under an intergovernmental agreement between the United
States and an applicable foreign country, reports such information to its local tax authority, which will exchange such information with
the U.S. authorities. Accordingly, the entity through which CAAS Cayman ordinary shares are held will affect the determination of whether
such withholding is required. Similarly, a 30% United States withholding tax may apply to dividends paid on CAAS Cayman ordinary shares
to a “non-financial foreign entity” (as specifically defined in the Code) that does not qualify under certain exemptions,
unless such entity either (i) certifies to CAAS Cayman that such entity does not have any “substantial U.S. owners” or
(ii) provides certain information regarding the entity’s “substantial U.S. owners,” which CAAS Cayman, or the applicable
withholding agent, will in turn provide to the Secretary of the Treasury. If a dividend payment is both subject to withholding under FATCA
and subject to the withholding tax discussed above under “—Distributions,” an applicable withholding agent may credit
the withholding under FATCA against, and therefore reduce, such other withholding tax. CAAS Cayman will not pay any additional amounts
to holders in respect of any amounts withheld.. Holders should consult their own tax advisors regarding these requirements and whether
they may be relevant to ownership and disposition of CAAS Cayman ordinary shares.

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PROPOSAL TWO — THE ADJOURNMENT PROPOSAL</div>

The Adjournment Proposal,