I'd think that proves the opposite: Even though it hurt the Norwegian government's relationship with China, the committee still went ahead with their decision.
The committee awarding the Nobel Peace Prize to a Chinese dissident was led by a former prime minister, its members two former members of government and two former members of parliament.
If you are a country in which the powers that be control just about anything, I guess you could be forgiven for being doubtful as to the committee's independence...