Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 79

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 79
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 liable for the damage caused. Besides, enterprises should adopt processes and equipment with high resource utilization rate and
low pollutant discharge, as well as comprehensive utilization technology of waste and harmless treatment technology of pollutants, so
as to reduce the generation of pollutants. Enterprises, institutions and other producers and operators who illegally discharge pollutants
will be fined by the environmental protection authorities.

Regulations on Foreign Investment in China

The establishment, operation, and management of
companies in China are governed by the PRC Company Law, as amended in 2004, 2005, 2013, 2018 and 2024. The PRC Company Law applies to
both PRC domestic companies and foreign-invested companies. The direct or indirect investment activities of a foreign investor shall be
governed by the PRC Foreign Investment Law and its implementation rules. The PRC Foreign Investment Law is promulgated by the National
People’s Congress on March 15, 2019, and was effective on January 1, 2020, which replaced the PRC Equity Joint Venture
Law, the PRC Cooperative Joint Venture Law, and the PRC Wholly Foreign-owned Enterprise Law. The Foreign Investment Law adopts the administrative
system of pre-entry national treatment along with a negative list for foreign investments, establishing the basic framework for the access
to, and the promotion, protection, and administration of foreign investments in view of investment protection and fair competition.

Pursuant to the Foreign Investment Law, “foreign
investments” refers to any direct or indirect investment activities conducted by any foreign individual, enterprise, or organization
(collectively referred to as “foreign investors”) in the PRC, which includes any of the following circumstances: (i) foreign
investors establishing foreign-invested enterprises, or FIEs, in the PRC solely or jointly with other investors; (ii) foreign investors
acquiring shares, equity interests, property portions or other similar rights and interests thereof within the PRC; (iii) foreign
investors investing in new projects in the PRC solely or jointly with other investors; and (iv) other forms of investments as defined
by laws, regulations, or as otherwise stipulated by the State Council. According to the Foreign Investment Law, the State Council shall
promulgate or approve a list of special administrative measures for market access of foreign investment, or the Negative List. The Foreign
Investment Law grants national treatment to foreign-invested entities, except for those foreign-in