A top level summit opened in the Vatican on Friday with the objective of mapping out the Catholic Church's strategy on the thorny question of relations with China.
The Holy See broke off diplomatic ties with China after the 1949 Communist revolution and since then relations have been frosty at the best of times.
The enduring divide in China's 14-million strong Catholic community, between those faithful to the pope and those who are not, is an ongoing bugbear and makes every bishop's appointment a source of tension.
The two-day summit, presided over by Vatican Secretary of State Tarcisio Bertone, was attended by several Catholic prelates from Asia, including Cardinal Joseph Zen, the bishop of Hong Kong.
It was expected to look at a web of interconnected issues including the nomination of Chinese bishops and the status of the state-run Patriotic Association of Chinese Catholics.
The Patriotic Association does not accept the authority of the pope and in 2006 appointed three bishops without the consensus of the Vatican.
Vatican-watchers say a debate is under way in the Catholic Church over what approach to take.
A possible hard line would mean non-approved bishops were ordered not to carry out their new duties, an approach which would be seen as hostile by Beijing and possibly provoke a reaction.
A diplomatic line, meanwhile, would forgive the priests involved and pursue dialogue in the hope that the influence of the Patriotic Association could be gradually reduced.
Under Benedict, the Vatican has made it clear it wants to make progress with the China conundrum and is ready to shift its ambassador, or 'apostolic nuncio', from Taipei to Beijing.
The Holy See shifted its diplomatic mission to Taiwan 50 years ago, a move which continues to rankle Beijing because it sees the island as a renegade province.
China is unwilling to accept the mission's return and the re-establishment of relations if it means renouncing the authority and influence it wields through the Patriotic Association.
PERMANENT COMMISSION.
Father Bernardo Cervellera, head of AsiaNews, the missionary news agency which has covered the situation of Chinese Catholics extensively, said a permanent commission on China would be set up after the weekend summit in the Vatican.
"The problem for the Holy See is to understand how much it can trust a government that on the one hand promises detente and on the other allows serious violations of human and religious rights," he said.
A Hong Kong newspaper reported this week that the Vatican has approved the recent nomination by Beijing of Father Gan Junqui as bishop of Canton. If true, it could signal a return to dialogue between Rome and Beijing, but the report has not been confirmed by the Vatican or by the Chinese foreign ministry.