"The lifting of the embargo could be a better protection for us than maintaining it," said Alliot-Marie, adding France had strict export regimes that would prevent most lethal technologies getting into China's hands.
"China is rapidly developing its industry, and today our experts say that in five years China could make exactly the same arms that we have today. And they will do it if they cannot import," she said.
"So maybe if we can sell them the arms, they will not make them. And in five years' time, they will not have the technology to make them."
US President George W. Bush's administration has said it is concerned about any lifting of the ban because it could upset the military balance in East Asia and send the wrong signal to China on human rights.
The issue is expected to be on the agenda when Bush visits Europe next week. Earlier this month, the US House of Representatives voted 411-3 for a resolution calling on Bush to press EU leaders not to lift the ban.
US officials say that without the embargo, European countries would be free to sell Beijing advanced technology that could some day be used against US forces if America had to help defend Taiwan in a war with China.
The ban was imposed after Chinese leaders deployed the army to crush student-led democracy protests in June 1989, killing hundreds, possibly thousands of people.
"The embargo was made about 15 years ago, and the evolution of China and of its international relations have been very significant since then," said Alliot-Marie.
"We cannot have relationships with China in all these fields - economic, medical, research and so on - and conserve the embargo as it is today," she said.