Dyeing dogs has become pretty popular in Beijing. CNN just ran a story that talks about this phenomenon; they even highlighted this dog from our neighborhood! We see this dog pretty frequently. The owners' ayi (maid) is too embarrassed to walk the dog except in the early morning (when she also apparently doesn't feel the need to scoop up after him).
I think the shop they mention in the story is in the shopping center across the street from us. I've seen a dog painted like a tiger or more simple ones with just rainbow colored highlights.