Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 86

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 86
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 the
registration procedure.

Regulations on Foreign Exchange

General Administration of Foreign Exchange

Under the PRC Foreign Currency Administration
Rules promulgated on January 29, 1996, and most recently amended in 2008 and various regulations issued by the SAFE, and other
relevant PRC government authorities, Renminbi is convertible into other currencies for current account items, such as trade-related receipts
and payments and payment of interest and dividends. The conversion of Renminbi into other currencies and remittance of the converted
foreign currency outside China for capital account items, such as direct equity investments, loans, and repatriation of investment, requires
the prior approval from SAFE or its local branch.

Payments for transactions that take place in China
must be made in Renminbi. Unless otherwise approved, PRC companies may not repatriate foreign currency payments received from abroad
or retain the same abroad. FIEs may retain foreign exchange proceeds in accounts with designated foreign exchange banks under the current
account items subject to a cap set by SAFE or its local branch. Foreign exchange proceeds under the current accounts may be either retained
or sold to a financial institution engaged in the settlement and sale of foreign exchange pursuant to relevant SAFE rules and regulations.
For foreign exchange proceeds under the capital accounts, approval from SAFE is generally required for the retention or sale of such
proceeds to a financial institution engaged in the settlement and sale of foreign exchange.

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Pursuant to the Circular of SAFE on Further Improving
and Adjusting Foreign Exchange Administration Policies for Direct Investment, which was promulgated on November 19, 2012, became
effective on December 17, 2012, and was further amended in 2015, 2018 and 2019, approval of SAFE is not required for opening a foreign
exchange account and depositing foreign exchange proceeds into the accounts relating to the direct investments. This circular also simplifies
foreign exchange-related registration required for foreign investors to acquire equity interests of PRC companies and further improves
the administration on foreign exchange settlement for FIEs.

The Circular on Further Simplifying and Improving
Foreign Exchange Administration Policy on Direct Investment, or SAFE Circular 13, which became effective on June 1, 2015, and was
amended in 2019, cancels the administrative approvals of foreign exchange registration of direct domestic investment and direct overseas
investment and simplifies the procedure of foreign exchange-related registration. Pursuant to