China rights lawyer arrested for tax evasion-activist

A pioneering Chinese legal rights advocate has been formally arrested on tax evasion charges, nearly three weeks after he was seized from his home at dawn, a leading activist and academic said on Tuesday.

Xu Zhiyong's arrest is the latest tightening of Beijing's grip on the country's determined but small activist community, which has come under intense government pressure in a year with several sensitive anniversaries.

In June, Beijing marked 20 years since the crackdown on protesters in Tiananmen Square, and in October the country celebrates the 60th anniversary of the People's Republic.

Xu, co-founder of the Open Constitution Initiative, or Gongmeng, had been out of contact since he was taken away by security officials on July 29.

Notice of his arrest was sent to his employer, the Beijing University of Post and Telecommunications, earlier this week, said Teng Biao, another high profile rights lawyer.

"There isn't a legal justification for this arrest," added Teng, who said he was told about the arrest by Xu's lawyer, Zhou Ze. Zhou declined comment on the case.

The arrest brings the case closer to a possible trial -- although it is not a firm decision to prosecute -- and means Xu may potentially be allowed some access to his lawyer.

But in a legal system controlled by the ruling Communist Party, he faces a high likelihood of coming before a judge.

Teng said the charges carry a maximum seven-year sentence.

"In the short term, this arrest will influence our work, but from a long-term perspective, it can't completely stop our work," Teng said. "Chinese society wants to move towards rule of law."

Made up of scholars, lawyers and rights advocates, Xu's Gongmeng group has annoyed Beijing with a series of high-profile cases, including providing legal aid to victims of tainted baby milk formula and with a report criticising the handling of demonstrations across the Tibetan plateau last year.

The group's Beijing office was shut down for non-payment of taxes earlier this month. Its website is no longer active.

BEIJING, Aug 18 (Reuters)