Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 135

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 135
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 by the Company and CAAS Cayman, including those contained in a certificate of an officer of the Company and CAAS Cayman. In addition,
the opinion is prospective and dependent on future events and has assumed that the representations contained in the officer’s certificate
will continue to be true and correct through the completion of the Redomicile Merger. The opinion could also be affected by any change
in the authorities upon which the opinion is based. If any of the foregoing representations or assumptions is inaccurate or any of the
relevant authorities change, the tax consequences of the Redomicile Merger could differ from those described herein and in the opinion
that our tax counsel has delivered. An opinion of tax counsel neither binds the IRS nor precludes the IRS or the courts from adopting
a contrary position. The Company does not intend to obtain a ruling from the IRS on the tax consequences of the Redomicile Merger. The
remainder of this discussion assumes that the Redomicile Merger qualifies as a reorganization within the meaning of Section 368(a) of
the Code.

U.S. Federal Income Tax Consequences of the Redomicile Merger to the Company and CAAS Cayman

Neither the Company nor CAAS Cayman will recognize
any gain or loss for U.S. federal income tax purposes as a result of the Redomicile Merger.

Pursuant to Section 7874 of the Code, CAAS
Cayman will be treated as a U.S. corporation for all purposes under the Code because (i) after the Redomicile Merger, CAAS Cayman
will have acquired substantially all of the properties held directly or indirectly by the Company, (ii) after the Redomicile Merger,
CAAS Cayman will not have substantial business activities in the Cayman Islands, and (iii) the former holders of the Company’s
common stock will hold, by reason of owning shares of the Company’s common stock, at least 80% of the CAAS Cayman ordinary shares.

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

This section applies to beneficial owners of Company
common stock that are U.S. Holders. A U.S. Holder is a beneficial owner of Company common stock that is for U.S. federal income tax purposes:

| · | a citizen or individual resident of the United States;                                                                                 |
| · | a corporation, or other entity taxable as a corporation, created or organized                                                          
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