BRUSSELS – The US ambassador to the European Union has warned that the transatlantic dispute over the EU’s proposed lifting of the China arms embargo could escalate into something "very very serious". In an interview with the EUobserver, Rockwell Schabel said, "We feel that it is the wrong thing to do and particularly now that this law has been passed", he said referring to a law passed by the National People's Congress of China authorising an invasion of Taiwan if the island seeks independence. He said it was likely that it is going to affect trade between the two sides....