Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 70

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 70
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certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future
release regulations or policies regarding any industry that could adversely affect the business, financial condition and results of operations
of our company.

Furthermore, the Chinese government has also indicated
an intent to exert more oversight and control over securities offerings and other capital markets activities that are conducted outside
of China and over foreign investment in China-based companies. Any such action, once taken by the Chinese government, could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to
significantly decline or in extreme cases, become worthless. The Chinese government initiated a series of regulatory actions and statements
to regulate business operations in China, including enforcement actions against illegal activities in the securities market, enhancing
supervision over China-based companies listed outside of China using the variable interest entity structure, adopting new measures to
extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. For example, on July 6, 2021,
the relevant PRC government authorities made public the Opinions on Intensifying Crack-Down on Illegal Securities Activities. These opinions
emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based
companies and proposed to take measures, such as promoting the construction of relevant regulatory systems to deal with the risks and
incidents faced by China-based overseas-listed companies.

The Chinese government may further promulgate
relevant laws, rules and regulations that may impose additional and significant obligations and liabilities on overseas listed Chinese
companies regarding data security, cross-border data flow, anti-monopoly and unfair competition, and compliance with China’s securities
laws. It is uncertain whether or how these new laws, rules and regulations and the interpretation and implementation thereof may
affect us, but among other things, our ability to obtain external financing through the issuance of equity securities in the United States
or other markets could be negatively affected, and as a result, the trading prices of our securities could significantly decline or become
worthless. For a detailed description of risks related to our doing business in China, see “Risk Factors and Caution Regarding
Forward-Looking Statements - Risks Related to Doing Business in China and Other Countries besides The United States.”

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Permissions Required from the PRC Authorities for Our Operations

We conduct our business primarily through our
subs