Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 23

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 23
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 or become worthless.

Doing Business in China

As a result of our operations in China, the Chinese
government may exert influence over our operations from time to time, which could result in a material change in our operations and/or
the value of our securities. For example, the Chinese government published 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.

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Furthermore, the Chinese government has also indicated
an intent to exert more oversight and control over securities offerings and other capital markets activities that are conducted outside
of China and over foreign investment in China-based companies. Any such action, once taken by the Chinese government, could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to
significantly decline or in extreme cases, become worthless. The Chinese government initiated a series of regulatory actions and statements
to regulate business operations in China, including enforcement actions against illegal activities in the securities market, enhancing
supervision over China-based companies listed outside of China using the variable interest entity structure, adopting new measures to
extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. For example, on July 6, 2021,
the relevant PRC government authorities issued the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with
Law. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas
listings by China-based companies and proposed to take measures, such as promoting the construction of relevant regulatory systems to
deal with the risks and incidents faced by China-based overseas-listed companies.

The Chinese government may further promulgate relevant
laws, rules and regulations that may impose additional and significant obligations and liabilities on overseas listed Chinese companies
regarding data security, cross-border data flow, anti-monopoly and unfair competition, and compliance with China’s securities laws.
It is uncertain whether or how these new laws, rules and regulations and the interpretation and implementation thereof may affect
us, but among other things, our ability to obtain external financing through the issuance of equity securities in the United States or
other markets could be negatively affected, and as a result, the trading prices of our securities could significantly decline or become
worthless. For a detailed description