From the New York Times (link):
The state-controlled Catholic Church in China installed a second bishop today over the objections of the Vatican, a move that could derail diplomatic efforts aimed at the re-establishing diplomatic relations between Beijing and the Holy See.
The Chinese Catholic Patriotic Association, a group set up by Mao Zedong to control the Catholic Church in China, arranged for the consecration of Lin Xinhong as bishop of Wuhu this morning in Anhui Province in eastern China. China has two Catholic hierarchies, the government-authorized church and an underground church of bishops and other priests loyal to Rome.
See also “Viewpoints: China and the Vatican” from the BBC.