ARTICLE: "Leading Chinese Advocate of Democracy and Human Rights Wins European Prize: A recognition despite strong warnings from Beijing," by Jim Yardley, New York Times, 24 October 2008.
China lobbied hard, but the award was given anyway. Hu Jia doesn't argue against China's territorial integrity (touchier) but more about the need for human rights, democracy, and protection of the environment inside China—along with the rights of AIDS patients.
It's perfectly fine to recognize that struggle from outside, much like Helsinki did during the Soviet era.
The Chinese government will get all mad, but this sort of thing will never go away.