Business Monitor International (BMI) has released the latest special report, "China2012: From Miracle To Meltdown" outlining a case for a severe growth collapse inChinadriven by declining money supply growth rate, accelerating inflation and external slowdown with a threat of a double dip recession in the US.

According to BMI, the bearish outlook forChina's economyis more credible now than at any point in recent history. WithChina'shousing market exhibiting characteristics typically seen at the end of a bubble, a steep drop in house prices as developers offload inventory would pose a risk of a cash crunch to businesses operating inChina, especially property developers and small and medium enterprises (SMEs). As the repayment capacity of loans given to local government investment vehicles increasingly comes under threat, BMI also expects a pronounced correction in investment spending and instability inChina'sbanking sector.

From banking sector exposure and weak fiscal and monetary position, the report also focuses onChina'sconsumer market and its ability to shoulder the burden of growth should Chinese export growth fall due to a weakening US dollar and lower import demand from the US andEurope.

Moreover "China2012: From Miracle to Meltdown" assesses the impact of a Chinese hard landing on the regional economy. While no country would be immune from a Chinese hard landing, BMI argues thatAustraliais most precariously positioned to suffer the consequences of this severe economic slowdown. A Chinese hard landing would push theAustralian economyover the edge, likely ushering in a recession and potentially triggering a financial crisis.

Given the importance ofChinato the global economy, the report enables global investors, strategists and decision-makers across the corporate spectrum to identify business growth opportunities, avoid market risks and aid strategic planning activities over the short, medium and long term.