***UPDATE: XU ZHIYONG FREED ON BAIL ACCORDING TO AP, VOICE OF AMERICA***

Link to Associated Press Story
Link to Voice of America Story
August 23, 2009


China legal activist freed, but may face tax case
By JOE MCDONALD (AP) – 4 hours ago

BEIJING — An activist Chinese lawyer who was detained in a possible crackdown on dissent ahead of October's 60th anniversary of Communist rule was released Sunday, but he said authorities were investigating possible tax charges against him.

Xu Zhiyong co-founded a Beijing legal aid group that has tackled some of China's most politically sensitive cases, most recently representing parents of children sickened last year by chemical-tainted milk. Xu was detained July 29 and formally arrested Aug. 12 on charges of evading taxes.

Xu has been at the forefront of legal reform and public interest law in China, and has been a visiting scholar at Yale Law School in the United States several times.

He said he did not know whether authorities would proceed with a tax evasion case against his group, Gongmeng, or the Open Constitution Initiative.

"It is difficult to say," Xu told The Associated Press by telephone. He declined to give other details of his case or his detention.

His lawyer, Zhou Ze, said the case has yet to be sent to prosecutors.

"I think the tax evasion charge does not hold water," Zhou said. "We need to wait and see what will happen next."

Beijing appears to be trying to stifle possible dissent ahead of the Communist Party's celebration of its 60th anniversary in power Oct. 1.

In July, the government revoked the licenses of 53 lawyers in Beijing, many of them known for handling human rights and other sensitive cases.

Gongmeng was shut down in mid-July, and the Beijing tax bureau fined it 1.4 million yuan ($206,000) for failing to pay taxes.

Zhou said the case might involve accusations of failing to pay up to 200,000 yuan ($29,000) in taxes, but he said authorities have given no details.

Gongmeng lawyers represented parents in last year's tainted milk scandal. Six babies died and nearly 300,000 other children were sickened. The scandal led to an overhaul of China's dairy industry, but the government tried to block parents and activists from publicizing information about illnesses and complaints about authorities.
---


China Releases Prominent Human Rights Lawyer on Bail
By VOA News
23 August 2009


A leading Chinese human rights lawyer says he was released from detention Sunday, but still might face prosecution on charges of tax evasion.

Xu Zhiyong, co-founder of a legal-aid group known as the Open Constitution Initiative or Gongmeng, had been out of contact since security officials seized him from his home on July 29. He was formally arrested last Tuesday on charges of tax evasion.

Xu said Sunday he was released on bail pending trial.

Chinese authorities shut down the legal rights center more than a month ago for alleged nonpayment of taxes. Members of the group reported nearly two weeks later that Xu had been detained by police, and that they could not contact him.

The group has helped victims of China's tainted-milk scandal and offered assistance in human-rights cases. It also has issued a report criticizing the Chinese government's policies toward Tibet.

Rights groups say the latest developments are part of a widening crackdown on lawyers, rights activists and non-governmental organizations ahead of the 60th anniversary of the Chinese communist state.

Preparations are under way for a huge official celebration of the anniversary on October 1. Rights activists expect the government will try to prevent any public demonstration of dissent during the festivities.

China recently revoked the licenses of 53 Beijing lawyers, most of them prominent human-rights advocates. Amnesty International has condemned the crackdown on lawyers as a major blow to the human-rights defense movement in China.

In a widely quoted statement earlier this year, Xu said his Gongmeng group aims to help build the rule of law and advance Chinese society by objectively and independently studying human-rights protections, the situation in Tibet and other issues.

One of the government's main charges against Xu's group alleges that no taxes were paid on a $100,000 grant the Open Constitution Initiative received from Yale University. Xu has been a visiting scholar at Yale Law School on several occasions.