A top European Union official says the bloc plans to replace its arms embargo on China with a restrictive weapons sales policy.

EU External Relations Commissioner Benita-Ferrero Waldner made the comments Saturday in Jakarta, Indonesia -- where she took part in an Asian-EU summit this week.

She said China has changed since its bloody 1989 crackdown on pro-democracy protesters -- an event that prompted the EU embargo.

European officials say they will replace the embargo with the code of conduct that will place even stronger limitations on what type of military equipment can be sold to China.

U.S. officials have said lifting the embargo could assist China's military modernization program and would indicate approval of its human rights policy.