Liu wrote a statement, entitled "I have no enemies", intending for it to be read at his trial. He was never given the right to speak. The essay was later read in the 2010 Nobel Peace Prize ceremony, which Liu was unable to attend due to his imprisonment. On 25 December 2009, Liu was sentenced to eleven years' imprisonment and two years' deprivation of political rights by the Beijing No. 2 Intermediate Court on charges of "inciting subversion of state power". According to Liu's family and counsel, he planned to appeal the judgment. In the verdict, Charter 08 was named as part of the evidence supporting his conviction. John Pomfret of The Washington Post said Christmas Day was chosen to dump the news because the Chinese government believed Westerners were less likely to take notice on a holiday.
Responding to the verdict, United Nations Human Rights Commissioner Navanethem Pillay expressed concern about the deterioration of political rights in China. German Chancellor Angela Merkel strongly criticized the verdict, stating "despite the great progress in other areas in the expression of views, I regret that the Chinese government still massively restricts press freedom." Canada and Switzerland also condemned the verdict. The Republic of China President Ma Ying-jeou called on Beijing to "tolerate dissent". On 6 January 2010, former Czech president Václav Havel joined with other communist-era dissidents at the Chinese Embassy in Prague to present a petition calling for Liu's release. On 22 January 2010, European Association for Chinese Studies sent an open letter to Hu Jintao on behalf of over 800 scholars from 36 countries calling for Liu's release.
On 18 January 2010, Liu was nominated for the 2010 Nobel Peace Prize by Václav Havel, the 14th Dalai Lama, André Glucksmann, Vartan Gregorian, Mike Moore, Karel Schwarzenberg, Desmond Tutu and Grigory Yavlinsky. China's Foreign Ministry spokesperson Ma Zhaoxu stated that awarding the Nobel Peace Prize to Liu would be "totally wrong". Geir Lundestad, a secretary of the Nobel Committee, stated the award would not be influenced by Beijing's opposition. On 25 September 2010, The New York Times reported that a petition in support of the Nobel nomination was being circulated in China.
On 14 September 2010, the Mayor of Reykjavík, Jón Gnarr, met on an unrelated matter with CPC Politburo member Liu Qi and demanded China set the dissident Liu Xiaobo free. Also that September Václav Havel, Dana Němcová and Václav Malý, leaders of Czechoslovakia's Velvet Revolution, published an open letter in the International Herald Tribune calling for the award to be given to Liu, while a petition began to circulate soon afterwards.
On 6 October 2010, the non-governmental organization Freedom Now, which serves as an international counsel to Liu Xiaobo as retained by his family, publicly released a letter from 30 members of the U.S. Congress to President Barack Obama, urging him to directly raise both Liu's case and that of fellow imprisoned dissident Gao Zhisheng to Chinese President Hu Jintao at the G-20 Summit in November 2010. The Republic of China's President Ma Ying-jiu congratulated Liu on winning the Nobel Prize and requested that the Chinese authorities improve their impression in the eyes of the world by respecting human rights, but did not call for his release from prison.
On 15 October 2010, the China News Service indicated that in 2008 Liu had received a financial endowment from the National Endowment for Democracy, which is "a Washington-based nonprofit funded largely by the US Congress".
On 8 October 2010, the Nobel Committee awarded Liu the Nobel Peace Prize "for his long and non-violent struggle for fundamental human rights in China", saying that Liu had long been front-runner as the recipient of the prize. Liu's wife, Liu Xia, expressed gratitude on behalf of her husband to the Nobel Committee, Liu's proposers, and those who have been supporting him since 1989, including the Tiananmen Mothers—family members or representatives of those who were killed, or had disappeared, in the military crackdown of the protests of 4 June 1989. She said, "The prize should belong to all who signed Charter 08 and were jailed due to their support".
Liu Xia informed the laureate of his award during a visit to Jinzhou Prison on 9 October 2010, one day after the official announcement. She reported that Liu wept and dedicated the award to those who suffered as a result of the Tiananmen Square protests of 1989, saying: "The award is first and foremost for the Tiananmen martyrs" After Ms. Liu returned home, she was put under house arrest and was watched by armed guards. She expressed the desire to attend the awards ceremony in Norway in December, but was skeptical of her chances of being allowed to do so. Liu Xia wrote an open letter to 143 prominent figures, encouraging them to attend the award ceremony in Oslo.
China reacted negatively to the award, immediately censoring news about the announcement of the award in China, though later that day limited news of the award became available. Foreign news broadcasters including CNN and the BBC were immediately blocked, while heavy censorship was applied to personal communications. The Chinese Foreign Ministry denounced the award to Liu Xiaobo, saying that it "runs completely counter to the principle of the award and it is also a desecration of the Peace Prize". The Norwegian ambassador to the People's Republic of China was summoned by the Foreign Ministry on 8 October 2010 and presented with an official complaint about the granting of the Nobel Peace Prize to Liu. The Chinese government has called Liu Xiaobo a criminal and stated that he does not deserve the prize. Chinese dissident Wei Jingsheng, in his response to news of the award, criticized Liu by calling him "the accomplice of the Communist regime." As a result, nearly all large-scale commercial trades are limited, and their relation soured until after Liu Xiaobo's death in 2017, when talks begin. In October 2018, the Norwegian King Harald V visited Beijing and met with Chinese president Xi Jinping, symbolizing the recovery of China-Norway relations.