China Automotive Systems Closes $35 Million Private Placement

Mr. Jie Li, Chief Financial Officer ofChina Automotive Systems, commented, "We are very excited to receive funding from these highly-regarded investment groups. This new investment expresses investor confidence in our track record, growth strategy, operations and management. These new funds will be used immediately to enhance our operations to build shareholder value."

The underlying shares of common stock associated with the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from the registration requirements. China Automotive has agreed to file a registration statement with the SEC covering resales of any shares of common stock issued upon the conversion of notes and/or upon any exercise of warrants.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About CAAS

Based in Hubei Province, People's Republic ofChina,China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 1.1 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such asChina FAW Group, Corp., Donfeng Auto Group Co., Ltd., BrillianceChina Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com .

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition, and the impact of this financing on acquisitions, the purchase of production equipment, and on financial performance. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in demand for the Company's products; changes in consumer preferences and tastes; effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, delays and cost overruns related to developing and opening new production facilities; the need to repay the Senior Convertible Notes (at maturity or, in certain circumstances, upon earlier redemption) if they are not converted into Common Stock; and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.

    For further information, please contact:

     Jie Li
     Chief Financial Officer
     China Automotive Systems
     Email: jieli@chl.com.cn

     Kevin Theiss
     Investor Relations
     The Global Consulting Group
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com

SOURCEChina Automotive Systems, Inc.

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