Despite the extensive problems and human violations rights perpetuated by the Chinese government, some in service of the Olympic games themselves, most of the world seems to content to settle in and watch the Beijing Olympics one way or another. Apparently, that attitude has spread to Blizzard itself.
Currently on the European and Chinese servers, there are NPCs at each major Battlemaster area in the capital cities who proclaim that Battlegrounds are hosting some type of "Spirit of Competition."
For simply participating in a battleground, you are sent a Competitor's Tabard, which features 4 multi-colored rings on a white background, a clear reference to the Olympics itself. If you win a battleground during this time period, you may also have a chance at receiving a gold medal which summons a spirit of competition, which looks like a small Chinese dragon according to tipster Ichthallus.
This competition does not appear to be live on the US Servers, nor has anyone from Blizzard spoken up to reveal if it ever will be as of this writing. We'll have to watch and see what happens. As Blizzard does not appear to be an official Olympic partner, there is some concern from some quarters that this could simply be a copyright issue. It's also possible that this was meant to be a Chinese servers only event, and it only accidentally got onto the EU servers.
Thanks to everyone who sent us tips on this!
EDIT: Belfaire has confirmed that this event will be coming to US and Oceanic servers starting at Midnight server time. Thanks to those who let us know in the comments!