Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 62

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 62
---
, we may face regulatory actions or other sanctions from them.

The PRC government has significant oversight and discretion over the conduct of the business operations of our PRC subsidiaries or to exert control over any offering of securities conducted overseas and/or foreign investment in China-based issuers, and may influence our operations, may limit or completely hinder our ability to offer or continue to offer securities to investors, and may cause the value of such securities to significantly decline or be worthless, as the government deems appropriate to further regulatory, political and societal goals.

The PRC government may influence the operations
of our PRC subsidiaries from time to time , which could result in a material change in our operations and/or the value of our securities.
For example, the PRC government published new policies that significantly affected certain industries such as the education and internet
industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding any industry
that could adversely affect the business, financial condition and results of operations of our company. For example, on December 28,
2021, the CAC, adopted rules mandating that an issuer who is a CIIO or a “data processing operator” as defined therein
and who possesses personal information of more than one million users, and intends to have its securities listed for trading in a foreign
country must complete a cybersecurity review by the CAC. Alternatively, relevant governmental authorities in the PRC may initiate cyber
security review if such governmental authorities determine an operator’s cyber products or services, data processing or potential
listing in a foreign country affect or may affect national security. The rules became effective on February 15, 2022. Moreover,
on July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Cross-border Data Transmission, which came into
effect on September 1, 2022, and regulate the security assessment on the cross-border data transfer by data processor of important
data and personal information collected and generated during operations within the PRC. According to these measures, personal data processors
will be subject to security assessment conducted by the CAC prior to any cross-border transfer of data if the transfer involves (i) important
data; (ii) personal information transferred overseas by operators of critical information infrastructure or a data processor that
has processed personal data of more than one million persons; (iii) personal information transferred overseas by a data processor
that has already provided personal data of 100,000 persons or sensitive personal data of