The same old question... why are they so dumb?
http://news.bbc.co.uk/2/hi/asia-pacific/7532338.stm Web Curbs for Olympic Journalists
I still don't have an answer to it. Chinese people I've asked are also not able to give any sort of coherent answer.
How could the risk of some Chinese person reading the Amnesty International report or going to the Fa Lun Gong website possibly outweigh the reality of the negative press. The kinds of abuses that Amnesty reports on are just the sort of things that the kind of Chinese that are able to read in English on the internet find completely justifiable. In fact, there is more of a risk of public unrest due to their oh so sensitive nationalistic feelings being hurt by negative foreign media reports....
By the way, I agree with the government on the Fa Lun Gong. Too much history on their side there... (see Taiping rebellion, Boxer movement, Cultural revolution)