Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 94

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 94
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 be applicable to our offshore transactions or sale of our shares or those
of our offshore subsidiaries where non-resident enterprises, being the transferors, are involved.

Regulations on Employment

Labor Contract Law

The PRC Labor Contract Law, which became effective
on January 1, 2008, and amended in 2012, primarily aims at regulating rights and obligations of employment relationships, including
the establishment, performance, and termination of labor contracts. Pursuant to the Labor Contract Law, labor contracts must be executed
in writing if labor relationships are to be or have been established between employers and employees. Employers are prohibited from forcing
employees to work above certain time limits and employers must pay employees for overtime work in accordance with national regulations.
In addition, employees’ wages must not be lower than local standards on minimum wages and must be paid to employees in a timely
manner.

Social Insurance

As required under the Regulation of Insurance for
Labor Injury implemented on January 1, 2004 and amended in 2010, the Provisional Measures for Maternity Insurance of Employees of
Corporations implemented on January 1, 1995, the Decisions on the Establishment of a Unified Program for Old-Aged Pension
Insurance of the State Council issued on July 16, 1997, the Decisions on the Establishment of the Medical Insurance Program for Urban
Workers of the State Council promulgated on December 14, 1998, the Unemployment Insurance Measures promulgated on January 22,
1999, and the PRC Social Insurance Law implemented on July 1, 2011 and amended on December 29, 2018, employers are required
to provide their employees in China with welfare benefits covering pension insurance, unemployment insurance, maternity insurance, work-related
injury insurance, and medical insurance. These payments are made to local administrative authorities. Any employer that fails to make
social insurance contributions may be ordered to rectify the non-compliance and pay the required contributions within a prescribed
time limit and be subject to a late fee. If the employer still fails to rectify the failure to make the relevant contributions within
the prescribed time, it may be subject to a fine ranging from one to three times the amount overdue. On July 20, 2018, the General
Office of the State Council issued the Plan for Reforming the State and Local Tax Collection and Administration Systems, which stipulated
that SAT would become solely responsible for collecting social insurance premiums.

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