Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 80

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 80
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 expropriation or requisition of the investment of foreign investors is prohibited; (iii) mandatory technology
transfer is prohibited; and (iv) the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees
of intellectual property rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors
within the PRC, may be freely remitted inward and outward in RMB or a foreign currency. Also, foreign investors or FIEs should assume
legal liabilities for failing to report investment information in accordance with the requirements. Furthermore, the Foreign Investment
Law provides that FIEs established prior to the effectiveness of the Foreign Investment Law may maintain their legal form and structure
of corporate governance within five years after January 1, 2020.

On December 26, 2019, the State Council further
issued the Regulation for Implementation the Foreign Investment Law of the PRC, which came into effect on January 1, 2020, and replaced
the Regulations on Implementing the PRC Equity Joint Venture Law, Provisional Regulations on the Duration of PRC Equity Joint Venture
Law, the Regulations on Implementing the PRC Cooperative Joint Venture Law, and the Regulations on Implementing the PRC Wholly Foreign-owned
Enterprise Law. The Regulation for Implementing the Foreign Investment Law of the PRC restates certain principles of the Foreign Investment
Law and further provides that, among others, (i) if an FIE established prior to the effective date of the Foreign Investment Law
fails to adjust its legal form or governance structure to comply with the provisions of the Companies Law of the PRC or the Partnership
Enterprises Law of the PRC, as applicable, and complete amendment registration before January 1, 2025, the enterprise registration
authority will not process other registration matters of the FIE and may public such non-compliance thereafter; and (ii) the provisions
regarding equity interest transfer and distribution of profits and remaining assets as stipulated in the contracts among the joint venture
parties of an FIE established before the effective date of the Foreign Investment Law may, after adjustment of the legal form and governing
structure of such FIE, remain binding upon the parties during the joint venture term of the enterprise.

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According to the Regulation for Implementation
the Foreign Investment Law of the PRC, the registration of foreign-invested enterprises shall be handled by the State Administration
for Market Regulation, or the SAMR,