U.S. Pressing EU to Uphold Arms Embargo Against China By Philip P. Pan:

China has made ending the embargo its top priority in relations with the EU, in part because it is worried that persuading Europe to repeal the ban will be much more difficult after May, when the 15-nation bloc accepts 10 new members, including several considered close U.S. allies, the diplomats said.

The Chinese leaders who took office last year also appear eager to score a diplomatic victory that would set them apart from their predecessors, earn respect from the country's influential army and demonstrate to the world that China has moved out of the shadow of the Tiananmen massacre.

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No decision is expected from the EU until at least April. European officials are worried that any action before then might exacerbate tensions surrounding the March 20 presidential election in Taiwan, the self-governing island that China claims and has threatened to seize, diplomats said.

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The EU's deliberations have already alarmed some in the United States who feel that lifting the ban on weapons sales could upset the balance of military power across the Taiwan Strait. The United States is Taiwan's main source of arms and is committed to helping Taiwan defend itself against a Chinese attack.
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Some analysts said lifting the embargo would have little effect on China's military modernization program because China can purchase much of what it wants from Russia. Russian weapons systems are not as advanced as those produced in Europe, but they are less expensive.

"The Chinese understand that Western military equipment comes with significant strings attached, and those strings include the risk of sanctions that can cut off your supply of spare parts," said Robert Karniol, Asia-Pacific editor of Jane's Defense Weekly. "There is Chinese interest in a range of European military products that fulfill niche requirements, but I doubt lifting the embargo will have a broad impact on force modernization in China."