The Chinese authorities, prior to the Olympics, said that sure, there can be protests--but you have to apply for a permit, and protest only in certain designated areas.
So--so far, there have been 77 protest applications. None of them have been approved.
Update: the Chinese government is also reported to be confiscating Bibles from incoming missionaries.
Perhaps the Chinese decided that, since they're displaying their dictatorial ways, they might as well go all the way and show their lack of commitment to religious freedom, too.