Whether to lift arms embargo against China, imposed in the wake of the Tiananmen Square event 17 years ago, has aroused keen debates in and outside the European Union in recent years. In order to end the ban on weapons sales to China, France and Germany advocate policy review within the EU. It encountered, however, a great deal of opposition and hindrance because of objections from world public opinions and of the Anti-Secession Law passed by the National People's Congress in Beijing. This article will discuss the objectives and effectiveness of sanctions as a tool of foreign policy. Then it will explore EU's mechanism of sanctions and the whole evolution of arms embargo against China and analyze the content and recent revision of EU Code of Conduct on Arms Exports. In addition, the author will deliberately examine the standpoints of EU institutions and Member States on lifting arms embargo, as well as international responses, especially from the United States and Japan. The author concludes the potential development of this issue in the future.