China Automotive : SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF STOCKHOLDER DERIVATIVE ACTION, SETTLEMENT HEARING, AND RIGHT TO APPEAR

TO: All current record holders and beneficial owners of China Automotive Systems, Inc. ('CAAS') common stock ('CAAS Common Stock'*).

PLEASE READ THIS NOTICE CAREFULLY. YOUR RIGHTS WILL BE AFFECTED BY A DERIVATIVE LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to Delaware Court of Chancery Rule 23.1 and an Order of the Delaware Court of Chancery (the 'Court'), of the Stipulation of Settlement and the full printed Notice of Pendency and Proposed Settlement of Stockholder Derivative Action, Settlement Hearing and Right to Appear (the 'Long-Form Notice'). Copies of the Stipulation of Settlement and the Long-Form Notice are available for review at the 'News Release' section of www.caasauto.com.

YOU ARE ALSO HEREBY NOTIFIED that Plaintiffs in the Action have reached a proposed settlement of derivative claims that will require CAAS to implement certain corporate governance changes (the 'Settlement') on the terms and conditions set forth in the Stipulation of Settlement. If the proposed Settlement is approved by the Court, it will resolve all claims in the Action.

IF YOU ARE A CURRENT CAAS STOCKHOLDER, YOUR RIGHTS WILL BE AFFECTED BY THE PENDING ACTION AND THE SETTLEMENT. A Postcard Notice is currently being mailed to known current CAAS stockholders, and the Long-Form Notice is available at the 'News Release' section of www.caasauto.com or by contacting CAAS at:
Heng Ren Silk Road Investments, LLC, et al. v. Hanlin Chen, et al., C.A. No. 2019-0010-JTL

c/o Winston & Strawn LLP
42nd Floor, Bank of China Tower
1 Garden Road, Central, Hong Kong

Inquiries, other than requests for the Postcard Notice, may be made to following Plaintiffs' Counsel:
Eric L. Zagar, Esq.
Kessler Topaz Meltzer & Check, LLP
280 King of Prussia Road
Radnor, PA 19087

A settlement hearing will be held on February 5, 2012 at 11:00 a.m. EST at the Court of Chancery in the Leonard L. Williams Justice Center, 500 North King Street, Wilmington, DE 19801, to determine, among other things, (i) whether the proposed Settlement should be approved as fair, reasonable, and adequate; (ii) whether the Action should be dismissed with prejudice and the releases specified and described in the Stipulation of Settlement (and in the Long-Form Notice) should be granted; and (iii) whether Plaintiffs'Counsel's application for an award of attorneys'fees and reimbursement of litigation expenses should be approved.

The Court may adjourn and reconvene the Settlement Hearing without further notice of any kind other than oral announcement at the Settlement Hearing or any adjournment thereof, or a notation on the docket in the Action. If you intend to attend the Settlement Hearing, you should confirm the date and time with Plaintiffs' Counsel.

If the Settlement is approved by the Court, no further action is required by current CAAS stockholders. Because the Settlement is non-monetary, CAAS stockholders do not have to submit a claim form or take any other action in connection with the Settlement.
Any objections to the proposed Settlement and/or Plaintiffs' Counsel's application for an award of attorneys' fees and reimbursement of litigation expenses, must be filed with the Register in Chancery and delivered to Plaintiffs' Counsel and Defendants'counsel such that they are received no later than January 26, 2021, in accordance with the instructions set forth in the Long-Form Notice.

DO NOT CALL OR WRITE THE COURT OR THE OFFICE OF THE REGISTER IN CHANCERY REGARDING THIS NOTICE.

Dated: November 23, 2020
BY ORDER OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE

*Any capitalized terms used herein that are not otherwise defined herein shall have the meanings ascribed to them in the Stipulation and Agreement of Settlement and Release dated October 30, 2020 (the 'Stipulation of Settlement'), which is available at the 'News Release' section of www.caasauto.com.

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