Beijing prosecutors approved the arrest of venture capitalist Wang Gongquan yesterday, according to Chen Youxi, Wang's lawyer, who said prosecutors notified him by phone of the decision today.
Wang was detained in mid-September on suspicion of "gathering crowds to disturb public order" but had not been formally arrested until yesterday.
The vaguely defined charge has been used to prosecute many members of a loosely organised movement that's been pushing for greater public participation in Chinese political issues.
Chen declined to comment further, but Chen Min, a veteran journalist and close family friend of Wang's, said the businessman's family had not yet received notice of the arrest.
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Wang has been a supporter of the New Citizens Movement, a loose network of activists that has come under official scrutiny this year, with an estimated 30 members rounded up since March.
"If these types of actions are deemed intolerable by this country then they are warning all Chinese that this government does not allow its people to be citizens."
The group's members have done little more than lobby for rights of rural children and public disclosure of officials' assets, although they have urged people to hold peaceful street demonstrations and dinner meetings to discuss such issues.
Beijing prosecutors did not immediately respond to a request for comment.