Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 78

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 78
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 sellers shall
establish and improve internal product quality management systems and assume responsibility for product quality in accordance with the
law. The product quality shall meet the following requirements: (i) there is no unreasonable danger endangering personal and property
safety, and if there are national and industrial standards for safeguarding human health and personal and property safety, such standards
shall be met; (ii) it has the usable performance that the product should have, unless a description of the defect of the product’s
usable performance is provided; (iii) it conforms to the product standards indicated on the product or its packaging, and conforms
to the quality status indicated by product descriptions, physical samples, etc.

In June 2002, the SCNPC passed the Production
Safety Law of the People’s Republic of China, which was newly amended in June 2021. The Production Safety Law clarifies that
enterprises should strengthen safety production management, establish and improve all-employee safety production responsibility systems
and safety production rules and regulations, increase safety production funds, materials, technology, and staff input, and improve
safe production conditions. A system of investigating the responsibility for production safety accidents shall be implemented.

Regulations on Product Liability

Manufacturers and vendors of defective products
in the PRC may incur liability for losses and injuries caused by such products. The Civil Code of the People’s Republic of China
was adopted in May 2020 and has become effective since January 1, 2021. According to the Civil Code of the People’s Republic
of China, manufacturers or retailers of defective products that cause property damage or physical injury to any person will be subject
to civil liability.

In 1993, the Law of the PRC on the Protection of
the Rights and Interests of Consumers (as amended in 2009 and 2013), was enacted to protect the legitimate rights and interests of end-users
and consumers and to strengthen the supervision and control of the quality of products. If our products are defective and cause any personal
injuries or damage to assets, our customers have the right to claim compensation from us.

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Regulation on Environmental Protection

The Environmental Protection Law of the People’s
Republic of China was revised and adopted on April 24, 2014, and came into force on January 1, 2015. The law stipulates that
enterprises, institutions and other producers and operators shall prevent and reduce environmental pollution and ecological damage and
shall be