Chinese car sales fall for first time in more than 20 years

Trade war with US is handbrake on growth in world's second biggest economy

Sales of cars in China have dropped for the first time in almost 30 years, a sign of the importance of ending the country's trade dispute with the US as the world economy begins to falter.

As the US and China appeared to be edging closer to ending the trade dispute between them on Wednesday, the figures illustrate how the bitter standoff, as well as sluggish local demand, have acted as a handbrake on growth in the world's second biggest economy.

Related: US-China trade war: is the time ripe for peace to break out? | Larry Elliott