The last thing the Chinese government wanted this week was trouble on Tiananmen Square, so an ugly scene two weeks before the International Olympic Committee's visit to Beijing to decide the host city for the 2008 games was not welcome. The Chinese needed to be on their best human rights behaviour before the Olympic decision is made on July 13th.

But last Tuesday, the eve of the lunar New Year, five followers of the banned Falun Gong brought Tiananmen back to the forefront of controversy.

Just before three in the afternoon a middle-aged woman doused herself with petrol and set herself alight. A minute later four other people turned into human torches as they, too, set their clothes on fire. Paramilitary police, taken unawares, put out the flames. All five protesters were brought to hospital, with one reported dead.

The state news agency, Xinhua, was quick to report the incident, which suggests the Communist authorities were not too displeased by it. After all, China's senior politicians and spokesmen spend most of their time trying to convince people at home and abroad that the followers of Falun Gong are unstable and a danger to social cohesion.

The official Chinese media's attempts in recent weeks to discredit the organisation - one statement described Falun Gong as an "evil cult" and "social cancer" - is proof that Beijing remains very uneasy about the persistent public protests.

Tuesday's incident was the latest demonstration mounted by the spiritual movement since it was banned in July 1999. Formed by Mr Li Hongzhi in 1992, Falun Gong is founded on the principle of truthfulness, compassion and tolerance. Practitioners cultivate their minds, bodies and spirits by practising five sets of exercises each day.

According to the organisation it has no political agenda, no donations are sought or accepted and people are welcome to participate or leave any time.

"We are a guide to help people build strong morals and virtues so they can live with less stress, more kindness and more peace in their everyday lives," a a spokesman said.

At first the organisation was supported by the authorities and was recognised for improving people's health and generally encouraging greater morality. However, its rapid growth in popularity began to scare the Chinese government. By the end of 1998 there were a reported 70 million Chinese citizens practising, including many Communist Party members and government officials. The movement's tentacles also spread all over the world, with members in 30 countries including Ireland.

In early 1999 its practitioners began to be harassed and threatened by police who tried to stop them from studying or practising Falun Gong. In May 10,000 practitioners gathered outside the central government compound in Beijing demanding the right to practise their beliefs. On July 20th hundreds of members were arrested, and their homes were ransacked. Two days later the movement was outlawed.

Ever since Falun Gong practitioners have protested almost daily in Tiananmen Square. Middle-aged and elderly members defy the ban, offering themselves up as martyrs to security police who sometimes beat and kick them and haul them off to detention centres.

Falun Gong members are indistinguishable from ordinary sightseers. They announce their presence on the square by doing distinctive exercises with arms stretched upwards, or by unfurling banners or scattering leaflets. The police pounce, running back and forth under the direction of plainclothes security officials who pose as tourists.

The Chinese New Year protest last year witnessed some of the most violent clashes, when elderly members were kicked and punched to the ground before being dragged away.

Over the past 18 months tens of thousands of Falun Gong practitioners have been detained, and scores have been dispatched to "reform through labour" camps. Falun Gong says more than 100 members have been killed in police custody. China has acknowledged there have been deaths in custody, but claims they were from illness and suicide attempts.

The crackdowns on Falun Gong and the damage they are inflicting on China's reputation are putting pressure on Beijing to change its tactics or risk heavy diplomatic penalties.

But trying to second-guess the Chinese on the way forward with Falun Gong is no easy task.

On the one hand, China desperately wants to host the Olympics. A second failure to be selected - Beijing lost out to Sydney for the 2000 Games - would be a major setback. Success would be a hugely important symbol of acceptance by the international community.

ABOUT $18 billion has been set aside to beautify the city and to tackle pollution and traffic congestion. But all the money in the world won't buy something vital to Beijing winning the games, the Olympic spirit.

One Western diplomat has predicted that foreign TV footage of peaceful protesters being punched by police in Tiananmen Square during the IOC's visit could seriously damage China's chance of success.

On the other hand, the handling of the issue could prove crucial in the build-up to the Chinese leadership succession battle, which will come to a head in the next two years.

Western media have reported that President Jiang Zemin inspired the banning of Falun Gong and the subsequent crackdown. But there are suggestions that the Prime Minister, Mr Zhu Rongji, has a more conciliatory view.

Mr Jiang is struggling to ensure his preferred candidates succeed him and Mr Zhu Rhongji when they leave their positions in 2002 and 2003 respectively. Officials say a policy U-turn by the President could undermine his authority at what is believed to be a critical stage in the succession battle. As the Chinese leadership flounders over its handling of Falun Gong, supporters of the movement will continue their demonstrations. With the IOC inspection imminent, they will never get a better opportunity to garner attention for their movement, and to highlight their human rights demand.