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China carmakers request 15-20% price cuts for chips in sufficient supply

With automotive chip shortages gradually abating, Chinese automakers reportedly have asked suppliers to cut prices by 15-20% on those chips not in short supply, looking to reduce production costs, according to industry sources. This is a sharp contrast to practices by mainstream automakers in Europe, the US, Japan, and Korea. They usually adopt flexible negotiations with suppliers in seeking price cuts on those chips and components having been rising in quotes several times during tight supply, so as to maintain long-term partnerships, the sources said.