From The New York Times:
Senior members of Congress from both parties emerged from a meeting with President Bush on Tuesday warning Europe that if it lifts its ban on arms sales to China, the United States may retaliate with severe restrictions on technology sales to European companies.
The warning came after Mr. Bush, on his trip to Europe last week, twice cautioned the Europeans not to lift the restrictions, in place for 15 years. His insistence was based, at least in part, on a new American intelligence assessment that Beijing is rapidly becoming better equipped to carry out a sophisticated invasion of Taiwan and to counter any effort by the United States to react to such an attack, administration officials and intelligence analysts say.