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Mitsubishi Electric Corp. said Wednesday it plans to cut its procurement costs by 300 billion yen by the end of March 2005, mainly through increased purchases of parts from Chinese manufacturers.

The major electronics company said the move is designed to survive increasingly tough price competition in such sectors as electrical appliances.

Mitsubishi Electric said it will double the purchase of Chinese products to 80 billion yen by the end of March 2005 while lowering the ratio of domestic procurements through a review of its transactions with some 4,700 suppliers.