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Significant doctrinal and diplomatic developments involving the Holy See and Chinese Catholics occurred during the Papacy of Pius XII (1939-1958). The Vatican recognized Chinese rites in 1939, elevated the first Chinese cardinal in 1946, and established a Chinese hierarchy.
In 1942, the Holy See and the Republic of China established diplomatic relations. Previous efforts to establish diplomatic efforts had been blocked by France, which had positioned itself as the authority for Chinese Catholics after the unequal treaties were imposed on China following the Qing Empire's defeat in the Opium War.
An anti-communist, Pius XII during the Chinese Civil War prohibited Chinese Catholics from joining the Communist Party or participating in its activities. The Communists defeated the Chinese Nationalists and established the People's Republic of China in 1949. In 1950, the Holy See stated that participation in certain CCP-related organizations would result in excommunication from the Church. In response, initiatives including Fr. Wang Liangzuo's "Guangyuan Declaration of Catholic Self-Reformation" gained support from Chinese Catholics. This led to responses by the apostolic nuncio in China. Ultimately, Chinese authorities arrested the apostolic nuncios on allegations of colluding with American intelligence and false accusations of participating in a plot to kill Mao Zedong, Under police guard, deporting him British Hong Kong. The PRC broke off relations with the Holy See and in 1953, apostolic nuncio to China moved to Taiwan.
The PRC government persecuted many Chinese Catholics in the 1950s. In 1957, it established the Catholic Patriotic Association, which is part of its United Front system. Through this process, the Communist Party gained ultimate control over the appointment of Bishops. The Vatican's position was and is that the appointment of bishops is the prerogative of the Pope.