The Vatican and China's Communist leadership do not have formal diplomatic relations, as the Vatican recognises Taiwan while Beijing claims the self-ruled island as its own territory.
But they agreed in 2018 to allow both sides a say in the naming of bishops in China, whose population includes around 12 million Catholics.
The deal -- whose text has never been made public -- has drawn criticism from within the Church, with some seeing it as allowing the Communist government a stranglehold over the country's Catholics.
Yet as Pope Francis seeks to make inroads for the Church in China, it was renewed in 2020 and again 2022, each time for two years.
The four-year extension shows a "mutual trust", said Michel Chambon, an expert on Christianity in Asia at the National University of Singapore.
"It is not simply an extension, but a new generation agreement. It proves that it works sufficiently, trust is increasing and we are moving forward," he told AFP.
- 'Constructive spirit' -
Since a split in the 1950s, China's Catholic faithful have been divided between two camps.
One was state-sanctioned, their religious celebrations strictly regulated by the Communist Party, the other operated underground but with the support of the Vatican.
The 2018 deal aimed to bring them back together while giving Pope Francis -- the head of the world's almost 1.4 billion Catholics -- the final say in bishops' appointments.
"Through friendly consultations, the two sides have decided to extend the agreement for another four years," Chinese foreign ministry spokesman Lin Jian told a regular briefing on Tuesday.
He said both sides "have given positive evaluations" of the deal and "will maintain talks with a constructive spirit and continue to promote the improvement of China-Vatican relations".
The Vatican said in a statement Tuesday that it "remains dedicated to furthering the respectful and constructive dialogue" with Beijing aimed at furthering bilateral relations "for the benefit of the Catholic Church in China and the Chinese people as a whole".
- 'Not a danger' -
The Vatican said the renewal of the deal had followed "appropriate consultation and assessment".
Many believers maintain that government repression against the underground Church still takes place despite the China-Vatican rapprochement.
Since deal was struck, Beijing has appointed some bishops without consultations with the Vatican.
Last year, the Vatican said China had appointed a new bishop of Shanghai, the country's largest Catholic diocese.
And in November 2022, the Vatican expressed regret at the appointment of a bishop in a Chinese diocese that the Holy See does not recognise.
China's constitution guarantees religious freedom.
But rights groups say religious organisations face routine persecution and that freedom to worship is severely curtailed -- a trend they say has worsened under President Xi Jinping.
Chambon said that under the deal, 25 bishops had been regularised out of a total of 98, "a very significant proportion".
"Beijing is today much more reassured that Catholics are not a danger," he said.
Returning from an Asia-Pacific tour in September, Pope Francis said he was "pleased with the dialogues with China", saying "the results are good".
He said he would like to visit China, which he described as "a promise and a hope for the Church."
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