The establishment of formal ties between the Vatican and China has seen promising advancements as both sides have shown their commitment in the ongoing dialogue. Apart from the historical implication that the 50-year break under the Communist regime will be partially recovered, the dialogue is also widely seen as a door leading to more religious freedom for Catholics in Mainland China.

In the midst of the developing Vatican-China relationship, the Vatican’s ties with Taiwan is said to be the major obstacle as Beijing insists that the Vatican must treat Taiwan as an inseparable part of China as a pre-requisite to move forwards in their relationship.

The head of Hong Kong's Catholic diocese, Bishop Joseph Zen, however, hinted that rather than politics the issue of religious freedom and pastoral care for the Catholics in Mainland China is the core concern.

Speaking to the Times London, Bishop Zen said that the situation is not so simple in a country that has had a turbulent relationship with religion. Beijing cut formal ties and expelled foreign clergy in the 1950s, churches and religious sites were destroyed or desecrated in the 1966-76 Cultural Revolution.

In China, worship is only allowed in state-monitored churches, and churches loyal to the Pope in Rome are banned. Even in the officially recognised church, bishops are appointed by the state. China has repeatedly refused to allow the Vatican to appoint bishops, worrying it will amount to interference in its internal affairs. The priests or worshippers in unauthorised churches are subject to frequent harassment, arrest and imprisonment.

"Diplomatic relations for the Holy See are for a pastoral purpose, because without this we cannot care for so many faithful in China," Bishop Zen said to Times London, "they must understand that this is a completely religious matter and in no way harms the dignity of any country."

Bishop Zen also said to Reuters that currently the Vatican-China dialogue is still at the informal level. He stressed that the Vatican and Beijing must first talk and come to an agreement before any action can be taken.

Bishop Zen said it is very "likely" that informal dialogue between the Vatican and Beijing may have begun in late 2004. The group representing the Vatican was identified as the Comunita di Sant Egidio, a Catholic lay movement dedicated to evangelisation and charity around the world. On the other hand, a group of Chinese scholars is representing China in the dialogue.

"These people [from the lay movement] are very capable. Many are university professors ... very learned about history, structure of the church. But the Holy See must come into official bargaining."

"It's unfair the Holy See has to do such a very difficult step [abandon Taiwan] without any promise from the other side. What are you giving us? Only after discussion, agreement, then you do this, I do that. Each side must make concessions," Bishop Zen concluded.