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Mr Hu, a democracy, environment and Aids activist, is serving a jail term for inciting subversion of state power.

The parliament's president said Mr Hu was "one of the real defenders of human rights" in China, and that the award would support Chinese activists.

An angry Beijing had put pressure on the parliament not to honour Mr Hu.

"By awarding the Sakharov Prize to Hu Jia, the European Parliament firmly and resolutely acknowledges the daily struggle for freedom of all Chinese human rights defenders," said President Hans-Gert Poettering.

"The European Parliament is sending out a signal of clear support to all those who support human rights in China," he said.

Mr Hu is credited with chronicling instances of abuse and alerting both fellow Chinese human rights activists and foreign news organisations.

He was convicted last April of inciting subversion, and is now serving a three-and-a-half-year jail sentence. His wife, Zeng Jinyan, is under effective house arrest.