Reuters reported sources as saying a working group was set up in April to resolve the issue of who has authority to select and ordain bishops in China.

The group is also trying to settle a dispute over eight bishops who were appointed by Beijing, but who did not get papal approval - an act of defiance in the eyes of the Vatican.

Pope Francis is reportedly preparing to pardon the eight, possibly as early as this summer.

This would pave the way to further detente, say Catholic sources with knowledge of the deliberations.

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