Inside Director's Resignation Allows China Automotive Systems to Regain NASDAQ Compliance

WUHAN, Hubei, China, May 31, 2007 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. , a leading power steering components and systems supplier in China, today announced Mr. Andy Tse has resigned his executive director position from the China Automotive Systems' Board effective May 22, 2007. Mr. Tse remains his role as Senior Vice President of the Company. With his resignation from the Board, China Automotive Systems now has more independent directors than inside directors and regained compliance with NASDAQ Marketplace Rule 4350(c).

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