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China’s central bank said the global outlook is worsening and that it’ll tweak its policy in a sign that trade tensions with the U.S. are hurting the world’s second-largest economy.

“External conditions are undergoing profound changes, downward pressures are increasing, some companies are seeing more difficulties in their operations, risks accumulated over the long term are being exposed,” the People’s Bank of China said in its quarterly monetary-policy report published late Friday. The bank will “preemptively adjust and fine-tune policies according to the changing conditions.”