The IMF added that China also faces domestic risks, not least from a sharper-than-anticipated decline in the property market.
However, the IMF said China had ample room and the fiscal tools "to respond forcefully" to any such developments.
The IMF report comes as growth in China's economy has been slowing.
The fund said that it expects China's economy to grow by 8% in the current financial year, but warned that a lack to response to the deteriorating crisis in eurozone, may cut reduce that number by half.
"The main external risk continues to be spillovers to China from a worsening of the euro area crisis," the fund said.
"Assuming no policy response in China, growth could decline by as much as four percentage points in response to a 1¾ percentage point slowdown in global growth."
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