From Reuters, via Malaysia Star:

The Vatican and the government-backed Chinese Catholic Church have agreed for the first time on the nomination of a bishop in a sign of warming relations after decades of strain.

The Chinese-backed Church ordained Joseph Xing Wenzhi as an auxiliary bishop of Shanghai on Tuesday in an appointment that was approved by the Holy See, according to AsiaNews, a Catholic news agency specialising in China.

China does not allow Catholics to recognise the authority of the Pope. Instead, they must belong to state-backed patriotic associations if they want to worship openly.