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Last October, it was reported that dialogue between China and the Vatican on forging diplomatic relations was approaching the final stage. In November, two Chinese bishops recognized by the Holy See were ordained in China, an example of the improving ties between China and the Vatican.

But the next few months saw no progress reported in the Rome-Beijing dialogue, leading to guesses and speculations about what had slowed it down.

Sources familiar with the Vatican and the Chinese Church said negotiations are still going on, and there has been progress. "However, there are many details that need to be sorted out that are very important for both sides. These details are about religious issues, for the Vatican, and State prerogatives, for Beijing. There is no issue of principle, but these details are many and delicate," Professor Sisci said.

Father Jeroom Heyndrickx, a Belgian priest close to the Church in China and Rome, said that the different priorities of China and the Vatican may have led to different expectations and misunderstanding, which might have slowed down the dialogue. "Those from Rome … wish to discuss the normalization of the life of faith of Catholics in China. But negotiators of Beijing see them as representing the head of the Vatican State, not the 'head of the Holy See.' Their priorities in the negotiations lie perhaps more in the diplomatic field, different from those of the Holy See," he said in an email response to the Global Times.

Ucanews.com, a Catholic news agency, said in an article last month that multiple sources in the Catholic Church have said that the Holy See is not seeking diplomatic relations with China, but is only focused on resolving the key issue of the appointment of bishops.

The legal status of bishops continues to be a thorny issue in China-Vatican relations. "From what I heard, the two sides seem to have reached a near consensus on the appointment of future bishops. But they disagree on the treatment of existing bishops," Wang Meixiu, a research fellow at the Chinese Academy of Social Sciences, told the Global Times.  Currently there are around 40 bishops who are part of the underground church and have received papal, but not government, support.

Although China recognized the two bishops ordained by the Holy See last year, its distrust of some underground bishops - those who are recognized by the Vatican but not by the Chinese authorities - is obvious, and its treatment of some bishops often results in Catholic opposition. According to some foreign media, underground bishop Peter Shao Zhumin of Wenzhou, Zhejiang Province disappeared in May. On Monday, the Vatican issued a statement on the situation, saying the Holy See was "profoundly saddened for this and other similar episodes that unfortunately do not facilitate ways of understanding."

Taiwan is also a factor that is believed to be part of the dialogue, especially after Panama announced that it had cut its diplomatic ties with Taipei and switched them to Beijing on June 12. This makes the Vatican one of the remaining 20 countries, and the only one in Europe, that still maintains diplomatic ties with Taiwan.

Recognizing the closing Chinese mainland-Vatican ties, some Taiwan residents have hoped for "dual recognition," which would allow the Vatican to recognize both the Chinese mainland and Taiwan. "Such dual diplomatic recognition of both Taipei and Beijing would entail embracing Chinese and not abandoning the 23 million Taiwanese," said an open letter published in the Taipei Times.

But Chinese experts say this is impossible, and if diplomatic relations are to be established, the Vatican will have to cut its ties with Taiwan. "Generally, the Taiwan question isn't at the center of negotiations," Wang said.