BILD reporters have uncovered Beijing's secret sex industry, hidden in the back rooms of the Olympic host city's hair salons and karaoke bars.

The Chinese government may have cracked down on the illegal sex trade in preparation for the Olympic Games, but Beijing's sex industry is secretly thriving.

There are reportedly more than 10 million prostitutes working in China, and in the shadows of the Olympics Games, Beijing has become the country's sex capital.

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"The government threw many Mongolian women out of the city. They were working in the erotic industry," said Jie (34). She works in a hair salon approximately half an hour outside of Beijing. "Of course I can cut hair. But my massages are better! And other things even better than that…" For about €40, Jei takes her guests into a backroom where sex instead of haircuts is sold.

Another hotspot for the secret sex trade in Beijingis the city's karaoke bars. Groups of Chinese come here to drink and sing with friends. But those who come alone won't stay that way for long. The karaoke bars are a prime attraction for prostitutes looking for work.

One bar owner from Huaxiang said: "Nobody is alone for long in our house. That is a karaoke tradition of ours!"

The market for sex pills is booming in Beijing as well. The latest trend is a pill with chemicals supposedly derived from chimpanzees.

Sex shop owner Zhang said: "One of these pills works for up to six hours. You have to take it three hours before. It gives the man unbelievable stamina. Plus, it uses ingredients from chimpanzees so it gives you a beguiling scent!"

Chairman Mao outlawed the sex trade in China in 1949 - and so as the country heads towards the 60th anniversary of prostitution being made illegal, it seems not much has changed.