Investigations showed that Peter Dahlin from Sweden and Wang Quanzhang, previously alawyer at a law firm in Beijing, jointly established an agency called Joint DevelopmentInstitute Limited in Hong Kong in August 2009.
They carried out activities in China in the name of providing aid for those in need of helpwhile defending rights, without registering and reporting to the Chinese government. Inthis way, they tried to avoid governmental supervision of their activities and their use offunds.
Xinhua said Dahlin's group has been receiving financial support from seven overseasorganizations. During the past several years, the group set up more than 10 so-called legalaid centers, trained several illegal lawyers without license and ignited petitioners' hatredtoward the Chinese government.
The group took advantage of these people to collect negative information about China indifferent fields and aspects. By distorting, exaggerating information and making up facts,the agency provided so-called "human right reports" to organizations overseas.
Security departments said other suspects of the group detained, including a man surnamedWang and a man surnamed Xing, confessed that Dahlin's group received a total 10 millionyuan ($1.5 million) from overseas organizations, trying to discredit China and disturb thesocial order of the country.
Dahlin was detained on Jan 3 and received residential surveillance. On Saturday, he wasallowed to meet staff from the Swedish Embassy to China.
The case remains under further investigation.