International Monetary Fund (IMF) leaders are warning the world to prepare for a massive slowdown in the Chinese economy.

“As the Chinese economy is adjusting to a new growth model, growth is slowing — but not sharply, and not unexpectedly,” Christine Lagarde, managing director of the International Monetary Fund, said Tuesday in Indonesia, according to prepared remarks. “Other emerging economies, including Indonesia, need to be vigilant to handle potential spillovers from China’s slowdown and tightening of global financial conditions.”

The trouble with the Chinese stock market and manufacturing slowdowns has impacted more than just the major U.S. stock markets.  Oil prices have tumbled; commodities markets such as copper have also been falling significantly because of the downturn in production.

Asia has been predicted by the IMF at the start of the year to drive world economies but they are now backing off from that position.  They are calling for “moderate” growth while admitting the growth “pace is turning out slower than expected.”

The U.S. says they’re watching to make sure the Chinese government is not attempting to manipulate their currency or stock market in an attempt to maintain a global economic leadership position.

“We are going to hold them accountable,” Treasury Secretary Jacob Lew told CNBC.