The hope of reconciliation between the Vatican and China is becoming reality as China expressed sincerity in its efforts to establish formal relations with the Vatican on Tuesday, according to the Associated Press.

Once the dialogue is completed, the historical 50-year break may be partially recovered and that may significantly open a wider door for the activities of Roman Catholic Churches in Mainland China.

"We are sincere about establishing ties with the Vatican," Chinese Foreign Ministry spokesman Kong Quan was quoted as saying by the Associated Press. He also expressed hope that under new Pope Benedict XVI, "the Vatican will create favourable conditions to normalise relations".

On the other hand, the Vatican also admitted the possibility of renewing the tie. Last Thursday, Pope Benedict XVI invited countries that did not have representatives in the Vatican to reconsider. Many say that he is probably referring to China.

"If they give us the possibility, we're ready tomorrow," Cardinal Jean-Louis Tauran, a former senior Vatican diplomat, said to the London Telegraph.

However, apparently, a major obstacle in re-building the Vatican-China relationship is the Vatican’s tie with Taiwan, which the Chinese government considers "non-negotiable".

In 1951, China forced its Roman Catholics to cut ties with the pope and refuses to have any contact with governments that have official relations with Taiwan, which the mainland claims as part of its territory. The Vatican in fact is the only European government that has official relations with Taiwan. Beijing considers that the Vatican must treat Taiwan as an inseparable part of China as a pre-requisite to move forwards in their relationship.

Yet Taiwan's ambassador to the Holy See reiterated the Taiwanese position that Taiwan is not the obstacle in the Vatican's relations with China, according to the London Telegraph.

"China uses Taiwan as a pretext, while the real problem is that of religious freedom," the diplomat, Chou-seng Tou, was quoted by the Italian news agency ANSA as telling reporters in Rome.

Tou also said that the speech of Pope Benedict XVI last week to the diplomatic corps gave a very clear message, "The Vatican wants to open the doors to the many Catholics who live in China."

China has between 15 million and 20 million Roman Catholics, most worshipping in unauthorised churches. They are subject to frequent harassment, arrest and imprisonment.

In China's officially recognised church, bishops are appointed by the state, and are allowed to recognise the Pope as a spiritual, but not worldly leader, and are restricted in some areas of doctrine. But Catholic sources have let it be known that 90 percent of China's official bishops have also been secretly approved by the Vatican.

Since the death of John Paul II, a series of arrests of priests and even bishops has been observed.