Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 79

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 79
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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-invested entities that operate in industries
deemed to be either “restricted” or “prohibited” in the Negative List. The Foreign Investment Law provides that
foreign investors shall not invest in the “prohibited” industries and shall meet certain requirements as stipulated under
the Negative List for investing in “restricted” industries.

In addition, the Foreign Investment Law also provides
several protective rules and principles for foreign investors and their investments in the PRC, including, among others, (i) that
local governments shall abide by their commitments to the foreign investors; (ii) FIEs are allowed to issue stock and corporate
bonds; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall
be made in a timely manner,