From Reuters via the New York Times (link):
China has no timetable for re-establishing ties with the Vatican, a religious official was quoted as saying, throwing into doubt earlier reports that the two sides could have diplomatic relations by the 2008 Olympics.
Qi Xiaofei, deputy head of the State Administration of Religious Affairs, made the remarks on Wednesday in Hangzhou where the World Buddhist Forum, China’s first international religious meeting since the Communists swept to power in 1949, got under way on Thursday.
See also “religious freedom in China,” “Catholicism in China” and “Chinese underground churches” at Wikipedia.