The World Bank has revised down its forecast for China’s economic growth in 2020 to 6.1% from the previous 6.2%, blaming the ongoing Sino-U.S. trade tensions.

“China’s immediate policy challenge is to manage disruptions caused by trade tensions with the United States without exacerbating domestic vulnerabilities,” the global development institution said in a report Wednesday on world economic prospects.

The institution kept China’s projected economic growth for this year at 6.2%, unchanged from its previous forecast released in January.

“(China’s) fiscal policies have eased and monetary policies have been generally supportive, helping to balance the impact of external and domestic headwinds,” it said.

The 6.2% forecast for this year is well below China’s actual growth of 6.6% in 2018, which marked the slowest annual expansion in 28 years. The World Bank said that the projection reflects weakening manufacturing activity and trade.

“In the longer term, the country’s key challenge is to continue its gradual shift to more balanced growth, while reducing the financial stability risks stemming from high levels of corporate debt,” the World Bank said.

Related: World Bank Lowers Its Forecast for China’s 2019 Growth

Contact reporter Lin Jinbing (jinbinglin@caixin.com)