China severed ties with the Vatican in 1951 over its Taiwan dispute

Father Joseph Li Shan, 42, was made bishop at a ceremony in a cathedral near Tiananmen Square.

His predecessor was appointed by the government-controlled Catholic Church without consulting the Vatican.

China severed ties with the Vatican in 1951, amid anger at the Vatican's recognition of Taiwan.

However, a recent letter from the Pope led to thawing of bilateral relations, correspondents say.

There has been no formal approval from the Vatican over the recent appointment.

But when it was announced in July, Cardinal Tarcisio Bertone, the Vatican secretary of state, said that Father Li was "very good, well-suited", calling his appointment "a positive sign".

Pope's letter

China's estimated eight to 12 million Catholics are split between the Beijing-backed Patriotic Church and an underground Church which remains loyal to the Vatican.

Relations between the two sides have been strained due to Beijing's insistence that the Patriotic Church has the right to appoint bishops without Rome's approval.

Bishop offers unity hope

But Pope Benedict XVI has sought to improve relations between the two sides.

In June he sent a letter to Chinese Catholics urging reconciliation and offering dialogue with the Chinese authorities.

He also stressed that Rome had already accepted the full authority of many of the bishops appointed unilaterally by the Beijing-tolerated Church.

But as recently as last year there were bitter exchanges between Rome and Beijing, says the BBC's David Willey in Rome.