Check out this story from The Economist about the Catholic Church in China, and the increased friction between the Vatican and communist officials. From the article:
THE Catholic church in China, according to a state-affiliated Catholic newspaper, Tianguang, has never enjoyed the sort of “political and religious harmony and friendly atmosphere that it has today.” This is not exactly the gospel truth. The Communist Party is trying to tighten its control of the Catholic church in China. Some of its members, as well as the Vatican, are fuming.
The rosy newspaper commentary marked the opening on December 7th in Beijing of a national congress of Chinese Catholic representatives. The Vatican objects to the conclave, which is intended to elect new leaders of the Chinese church’s governing bodies. These are, in effect, government appointments over which the Vatican has no say. Several Chinese bishops, who would have preferred to stay away out of loyalty to the Vatican, have been forced to attend the three-day event.