* Serbia among countries shunning Nobel Peace Prize ceremony
* EU concerned about respect for human rights in Serbia
* Belgrade faces challenges in EU accession bid
By Justyna Pawlak
BRUSSELS, Dec 8 (Reuters) - The European Commission warned Serbia on Wednesday its decision to shun the Nobel Peace Prize ceremony for a Chinese dissident would send the wrong message about its readiness to progress towards European Union entry.
Serbia is one of several states that plan to boycott Friday's award gala for Liu Xiaobo, after China mounted an unprecedented campaign against honouring the jailed activist.
But by siding with China, Belgrade has challenged EU support for the award that Beijing has branded an "obscenity".
"We are very disappointed about this possible decision," European Commission spokeswoman Angela Filote told a regular news briefing.
"We would expect a country with aspirations to join the EU to fully share the values of the EU ... (and) to coordinate its position with the position of our member states," she said.
Since applying for EU membership a year ago, Serbia has faced a tough challenge in trying to convince the bloc its democratic institutions and human rights safeguards are up to EU standards.
EU governments are particularly concerned over corruption and Belgrade's the extent of its willingness to come to terms with its violent role in wars that marked the disintegration of Yugoslavia in the 1990s.
Even before it starts official membership negotiations, Serbia will likely have to catch suspected war criminals such as wartime commander Ratko Mladic, as demanded by a U.N. tribunal, or prove that it cannot apprehend them.
China has flexed its economic muscle in drumming up support for the boycott. Most of the 18 states joining it -- including Serbia -- have strong commercial interests with China or share its hostility towards Western human rights pressure.
Belgrade has a number of business deals at stake, ranging from loans for major coal-powered plants to a bridge construction project over the Danube.
It also relies on Chinese support in the U.N. Security Council for its opposition to the independence of Kosovo, a former province of Serbia that seceded in 2008.
Explaining Belgrade's decision, Foreign Minister Vuk Jeremic said this week that Serbia was paying "special attention to bilateral relations with China".
Joining China in staying away also are: Russia, Kazakhstan, Colombia, Tunisia, Saudi Arabia, Pakistan, Iraq, Iran, Vietnam, Afghanistan, Venezuela, the Philippines, Egypt, Sudan, Ukraine, Cuba and Morocco. (Editing by Rex Merrifield)
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