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All the taxis in Beijing are bugged with hidden microphones that the government can tap in to at any time. Along with everything else, such as initially not allowing the media to really be at the games (which they finally gave up on) or the incredibly strict internet censors so that journalists can't use the web and denying certain people Visas such as political activists because they are too big of a "threat".
With all of the attention coming to china for the olympic games, you would think they would try and keep hidden how much they control their populous. It really isn't making them look good at all to the rest of the world, not the kind of image I would think the Chinese government would want to portray as they try to move up in the world.
