To save costs and weight on battery, sure.
I don't know Chinese use cases, but in continental Europe many machines don't run full 500km every day, even many private made less then 100km per day, so they don't need 500km range. Not for all 200km enough, many need about 220km..300km for commute (two commutes per day, so could charge battery at parking).
So, with halved battery size, you will got cheaper EV and more space for passengers and luggage.
Large range is a must for business (semi)-cargo machines and for taxi.