Linux user gdbserver does not respond to remote  `Ctrl-C' interrupts

The bug was reproduce in a recent mainline build for ARM Linux by starting emulation with a gdbserver:

$ qemu-arm -g 1234 a.out

and then connecting from gdb:

(gdb) target remote :1234
Remote debugging using :1234
[New Remote target]
[Switching to Remote target]
0x00008ba8 in _start ()
(gdb) b main
Breakpoint 1 at 0x8cb0: file hello.c, line 5.
(gdb) cont
Continuing.

Breakpoint 1, main (argc=1, argv=0xf6fff24c) at hello.c:5
5	  int n = 0;
(gdb) l
1	#include <stdio.h>
2	
3	int main (int argc, char **argv)
4	{
5	  int n = 0;
6	
7	  for (;;) {
8	     printf ("Hello, World!\n");
9	     sleep (5);
10	  }
(gdb) cont
Continuing.
^C^CInterrupted while waiting for the program.
Give up (and stop debugging it)? (y or n) y

Notice that the `Ctrl-C' interrupts are ignored.