China Automotive Systems Recognized as One of the Best Enterprises

Chairman Hanlin Chen Chosen as One of the Best 10 Entrepreneurs

WUHAN, Hubei, China, January 12, 2009: China Automotive Systems, Inc., a leading power steering components and systems supplier in China, today announced that China Automotive Systems was identified as one of the 100 "Best Enterprises" and Mr. Hanlin Chen was named one of the 10 "Best Entrepreneurs" by Jinzhou City at a recent ceremony in recognition of the Company's growth, rising market share and its ability to win contracts with large domestic and global customers.

These awards acknowledge the Company's achievements and contributions to Jinzhou City. Between the 2005 and 2007 years, China Automotive Systems achieved 110% sales growth with a faster 167% increase in net income. China Automotive Systems has announced milestones which will help sustain the Company's growth. First, the Company has advanced its design, manufacturing and quality control proficiency to develop world-class products. This achievement resulted in its first ever purchase order from a global automotive manufacturer headquartered in North America to supply power steering gears to this automotive manufacturer. Second, the Company shipped its first power steering gears to the Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for use in DPCA-manufactured cars. Additionally, China Automotive Systems is shipping product to another new client captured in 2008, ChangAn Auto Co. Ltd., one of China's most distinguished carmakers in China producing a full line of vehicles ranging from passenger cars, SUVs, light duty trucks, mini-vans, coach buses and other commercial vehicles.

Mr. Hanlin Chen, Chairman, commented, "Through our success at China Automotive Systems we have built a leading firm in our industry. We are now leveraging our success in China to penetrate the global markets. Although 2008 was a difficult year for the automotive industry with slower growth, we managed to continue our expansion and increase our market share. The automotive industry has been declared one of the key industries in China and we expect the Chinese government support and economic stimulus package will help generate a recovery in 2009."

The Chinese government has enacted policies to help stimulate the economy with a 4 trillion yuan ($586 billion) package. Proposals to enhance automobile demand include tax incentives for new purchases and providing rewards to swap older cars for new cars.

Both China Automotive Systems' and Mr. Chen's contributions to revitalizing Jinzhou City were acknowledged. Mr. Chen was the first of the 10 Best Entrepreneurs to receive a medal and a trophy. China Automotive Systems has improved the working environment in Jinzhou City through greater direct employment, as well as helping to build local suppliers and businesses.