year old embargo on sales of European weapons to Beijing following the 1989 Tiananmen Square crackdowon on pro-democracy protesters. E.U. discussions on ending the arms sales ban are still underway, with diplomats saying the bloc intends to replace the embargo by a strict code of conduct. The United States and Japan oppose any lifting of the E.U. ban, saying it could destabilise Cross-Straits relations and destabilise the region. China also wants the E.U. to recognise it as a market economy, a move that will make it subject to less stringent anti-dumping investigations focusing on whether low-cost Chinese exports are damaging E.U. industry.
