Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 70

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 70
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and sanctions imposed by the PRC regulatory agencies, including the CSRC, if we fail to comply with such rules and regulations, which
would likely adversely affect the ability of the Company’s securities to continue to trade on Nasdaq, which would likely cause the
value of our securities to significantly decline or become worthless.

There was no Chinese Communist Party official who
sits on the Company’s Board of Directors and that the Company’s certificate of incorporation and bylaws do not contain any
charter of the Chinese Communist Party.

Doing Business in China

As a result of our operations in China, the Chinese
government may intervene in or exert influence over our operations from time to time which could result in a material change in our operations
and/or the value of our securities. For example, the Chinese government has recently published new policies that significantly affected
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