This paper examines the interaction between the Vatican and Beijing and the possible future development of relations between the two. After having basically reformed and controlled mainland China's Catholic Church, the Chinese Communists established the "China Patriotic Catholic Association" in 1957, cutting down its connection to and affiliation with the Holy See. Such an arrangement is a historical tragedy and a clear mistake. In recent years, there have been calls for the resumption of diplomatic relations between Beijing and Vatican. However, such a move would involve both political and religious issues. The continued existence of the "underground church" in mainland China would be a great obstacle to the normalization of relations between the two, considering the fact that the basic stance of the underground Catholic church is intolerable to the Chinese Communist authorities. People who advocate the universalization of Catholicism suggest that the Holy See relegate its power to mainland China's Catholic Church, allowing teh local clergy to run their churches in line with the practical need in mainland China.