China's state-backed Church has begun to ordain Vatican-approved bishops after a hiatus of more than two years, signalling that long-strained relations between the two sides are on the mend.

Cai Bingrui was ordained bishop of Xiamen, in southeastern Fujian province, at the weekend. He was the third bishop to be installed in as many weeks with the approval of both China's government-sanctioned Catholic Patriotic Association and the Vatican.

According to people close to delicate diplomatic talks between China and the Vatican, which have not recognised each other since 1951, as many as 20 mutually agreed bishops could be ordained over coming months. “There has been some improvement in relations and there is now more mutual trust,” said one person familiar with the negotiations.