Approximately half of China’s PV manufacturing firms have ceased production, according to a report on the Chinese newspaper Guangzhou Daily and as cited by Digitimes. Chronic oversupply and massive price drops would appear to have nudged the lower-performing China-based manufacturers over the edge, with the solar energy division of CSG Holding’s research suggesting that half have stopped production, around 30% are at half their production capability and 20% are at pains to maintain their current levels of production.

Data collected by Digitimes Research imply that tier-1 solar companies are the only ones that are able to claim capacity utilization rates above 80% for the first half of 2011.

Furthermore, Chinese manufacturers are said to be facing high charges as a result of JinkoSolar’s recent fluoride spill. The charges are being implemented in an effort to prevent any such accidental environmental damage by Chinese manufacturers.