CAAS) has edged 1% lower to $22.70. Dayal writes that China Automotive Systems has revealed plans to tap into the emerging electric power steering (EPS) market and plans to manufacture about 1,000 units a month -- to be ramped up to 100,000 to 150,000 units yearly by 2011. He also notes that the company's management expects that EPS demand will peak by 2012 and predicts production to rise up to 0.5 million to 1 million units a year. The opportunities for the auto industry in China is clearly exploding, but Dayal notes that there are risks too, specifically those associated with political or regulatory changes in China, delay in new product development, and a highly competitive industry. -- Reported by Andrea Tse in New York Follow TheStreet.com on Twitter and become a fan on Facebook.