China Automotive Systems' Independent Director Steps Down from the Board to Join NASDAQ

WUHAN, Hubei, China, May 18, 2007 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. , a leading power steering components and systems supplier in China, today announced Mr. Guangxun Xu has resigned his non- executive director position from the China Automotive Systems' Board effective May 11, 2007 to fill the role of Chief Representative of NASDAQ in China. During his tenure with China Automotive Systems, he served on the audit committee, the compensation committee and the nomination committee of the board. These Committee vacancies will be filled through the appointment of other current independent directors.

Mr. Guangxun Xu is a veteran of 25 years in finance; he served as a managing director with the NASDAQ Stock Market International, Asia for over 10 years. He then later founded NASDAQ Listing Services Limited in 2004, where he provided advisory services to Chinese companies on US and UK listings, IPOs, pre-IPO restructuring, M&A, Corporate and Project Finance, corporate governance, post-IPO compliance, investor relations and risk management. He holds an MBA from Middlesex University, London.

Mr. Hanlin Chen, the Chairman and CEO of China Automotive Systems, commented, "We congratulate Mr. Xu's on his new position with NASDAQ China. As a strong supporter of NASDAQ in China, China Automotive Systems thanks NASDAQ for giving us the opportunity to enter the world's largest capital market. We strongly believe, under Mr. Xu's leadership, NASDAQ will continue to expand in China attracting both technology and traditional companies to list in the US market. We wish Mr. Xu success in his career pursuits in NASDAQ."

Mr. Guangxun Xu commented, "As the head of NASDAQ in China, it is my responsibility to step down from the Board and stay independent from any public company. I've enjoyed my tenure on China Automotive Systems Board. I wish China Automotive Systems success in continuous future growth and business expansion."

About CAAS

Based in Hubei Province, People's Republic of China, 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 800,000 sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Donfeng Auto Group Co., Ltd., Brilliance China 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. 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 consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.

  For further information, please contact:
  Christopher Chu
  Investor Relations
  The Global Consulting Group
  Tel: +1-646-284-9426
  Email: cchu@hfgcg.com

  Stacey Dimakakos
  Financial Media Relations
  The Global Consulting Group
  Tel: +1-646-284-9417
  Email: sdimakakos@hfgcg.com