Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 134

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 134
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), and does not address all aspects of U.S. federal income taxation that may be important to a beneficial owner in light of his or
her particular circumstances, including alternative minimum tax and Medicare contribution tax consequences, or tax consequences that may
apply to a beneficial owner subject to special rules, such as:

| · | a financial institution or insurance company;                                 |
| · | a tax-exempt organization;                                                    |
| · | a dealer or broker in securities, commodities or foreign currencies;          |
| · | a shareholder that holds Company common stock as part of a hedge, appreciated 
 financial position, straddle, conversion or other risk reduction transaction; |
| · | a U.S. Holder (as defined below) whose functional currency is not the U.S.    
 dollar;                                                                       |
| · | a shareholder that beneficially owns five percent or more of Company common   
 stock; and                                                                    |
| · | a shareholder that acquired Company common stock pursuant to the exercise     
 of compensatory options or otherwise as compensation.                         |

If a partnership holds shares of Company common
stock, the tax treatment of a partner will generally depend upon the status of the partner and the activities of the partnership. A partner
of a partnership holding shares of Company common stock should consult its tax advisor regarding the tax consequences of the Redomicile
Merger and the ownership and disposition of CAAS Cayman ordinary shares.

This discussion of material U.S. federal income
tax consequences is not a complete analysis or description of all potential U.S. federal income tax consequences of the Redomicile Merger
or the ownership or disposition of CAAS Cayman ordinary shares. Accordingly, each Company shareholder should consult its own tax advisor
to determine the particular U.S. federal, state or local or non-U.S. income or other tax consequences to it of the Redomicile Merger.

U.S. Federal Income Tax Consequences of the Redomicile Merger

Based on certain representations and assumptions
described below, all of which must continue to be true and accurate in all material respects as of the effective time of the Redomicile
Merger, it is the opinion of Skadden, Arps, Slate, Meagher & Flom, LLP, our tax advisor, that the Redomicile Merger will be treated
for U.S. federal income tax purposes as a reorganization within the meaning of Section 368(a) of the Code.

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The opinion described above has relied on representations
made