Obama, who has faced accusations of ignoring human rights concerns in his quest for better ties with China, issued a written statement welcoming Friday's Nobel prize for Liu, a 54-year-old writer and democracy campaigner.

"Last year, I noted that so many others who have received the award had sacrificed so much more than I," Obama said.

"That list now includes Mr. Liu, who has sacrificed his freedom for his beliefs."

The Nobel committee's decision put Obama in a difficult political position, balancing the moral duties of a Nobel laureate against the diplomatic realities of managing US relations with the emerging Asian superpower.

Obama praised Liu as "an eloquent and courageous spokesman for the advance of universal values through peaceful and non-violent means, including his support for democracy, human rights and the rule of law."

Obama noted that over the last 30 years, China had made "dramatic progress in economic reform and improving the lives of its people, lifting hundreds of millions out of poverty."

"But this award reminds us that political reform has not kept pace, and that the basic human rights of every man, woman and child must be respected.

"We call on the Chinese government to release Mr. Liu as soon as possible."

Secretary of State Hillary Clinton issued her own appeal for his release, saying that "governments should recognize the constructive role that citizens such as Liu Xiaobo play."

Representative Christopher Smith, who spearheaded a letter by US lawmakers in February to nominate Liu or another Chinese activist for the Nobel prize, voiced hope that the Obama administration will now become more vocal.

"Without a doubt, they have been at best indifferent and at worst enabling of the abuses in China," Smith told AFP. "This makes it more difficult for the administration to continue its ways."

Smith, a Republican from New Jersey, said that China's public warnings to Norway not to award the prize to Liu "shows they are so accustomed to getting away with intimidation."

The Nobel prize will "bring a light of scrutiny at long last" to a deteriorating human rights situation in China, Smith said.

Smith and other US lawmakers this week called on Obama to raise the cases of Liu and Gao Zhisheng, a human rights lawyer who has gone missing, when he meets Chinese President Hu Jintao next month in South Korea.

The Obama administration has said it has raised human rights issues with China, but often considered it more appropriate to air concerns privately.

Clinton raised controversy at the start of her tenure when she said human rights would not "interfere" with US-China cooperation on other issues, including climate change and the global economy.

In a break with precedent, China did not release any dissidents as a goodwill gesture when Obama visited Beijing last year.

Charles Freeman, a China expert at the Center for Strategic and International Studies, expected that Beijing would eventually look for a quiet way to release Liu.

But he said that the Nobel prize came at a "tough time for China," which is taking heat from Western nations which accuse it of keeping its currency artificially low.

"They're feeling a little bit put upon by the rest of the world right now," Freeman said.

When US leaders raise human rights with China, "they usually get a polite but firm response. The response will be a little less polite and a little more shrill this time," he said.

The Nobel Peace Prize in 1989 led to greater international acceptance of Tibet's exiled spiritual leader the Dalai Lama, who has since met every sitting US president.

earlier related report
Seven Chinese intellectuals hail Nobel peace laureate Liu
Beijing (AFP) Oct 9, 2010 - Seven Chinese intellectuals have signed an open letter congratulating Liu Xiaobo on winning the Nobel Peace Prize, calling him a standard-bearer for non-violence in China, one of them told AFP on Saturday.

The awarding of the prize to the jailed dissident -- the co-author of a bold manifesto calling for political reform in communist-ruled China -- offers "hope and support for a peaceful transformation in China," the letter says.

Noting that Liu was honoured by the Norwegian Nobel committee on Friday for his "long and non-violent struggle for fundamental human rights in China," the intellectuals said that China "must avoid a violent revolution".

Among the signatories of the letter -- published on www.peacehall.com, an overseas-based website -- are environmental activist Dai Qing and liberal economist Mao Yushi.

"There are only seven signatories for the time being but I think others will join this appeal little by little," Dai told AFP.

Liu was jailed for 11 years on subversion charges in December 2009 after the release of Charter 08, which has been widely circulated on the Internet and signed by more than 10,000 people since it was put online.

It calls for the protection of basic human rights and the reform of China's one-party system.

"On the question of political reform, the leaders must agree among themselves and take concrete steps to show they are sincere in their pledges to bring about peaceful change," the letter says.

"Liu Xiaobo is the standard-bearer for non-violence in China. He will make a positive contribution to the peaceful transformation of the country," it adds.

earlier related report
Australia lauds Nobel, calls for Liu's release
Sydney (AFP) Oct 9, 2010 - Australia Saturday commended the awarding of the 2010 Nobel Peace Prize to Chinese dissident Liu Xiaobo as a "fitting recognition" of his work and echoed US calls for his release.

Prime Minister Julia Gillard said Australia had made representations to Beijing on Liu's behalf and "welcome(s) the fact that his work has been recognised internationally now with the Nobel Peace Prize."

"The Australian government welcomes this news," Gillard told reporters.

"Certainly we've made representations that he should be released and we think the Nobel Prize is fitting recognition of the work that he has done."

Writer and academic Liu was sentenced last December to 11 years behind bars for subversion, following the 2008 release of "Charter 08", a manifesto for reform signed by more than 300 Chinese intellectuals, academics and writers.

China responded furiously to the award, calling it "blasphemy" and summoning the Norwegian ambassador to warn it would damage relations.

US president and 2009 Nobel peace laureate Barack Obama called for his immediate release after Friday's Nobel announcement, and Gillard said Canberra would also campaign for Liu to be freed.

"The view of the Australian government on his incarceration has been made well known to the Chinese government well before this point in time, we've made representations in the past and will continue to do so," she said.

China is Australia's major trading partner with two-way trade expected to top 85 billion US dollars this year as the Asian giant seeks raw materials to feed its rapid industrialisation. Resources exports to China helped Australia stare down recession during the global slump.

Several European governments and human rights groups including Amnesty International and Human Rights Watch have urged Liu's release, along with former Peace Prize winners the Dalai Lama and Lech Walesa of Poland.

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