A couple of news stories:
China, Vatican may have ties by Olympics: cardinal - Reuters
No Mainland Officials At Diocesan Reception For Cardinal Zen - Indian Catholic/UCAN
Both are pretty much the same though they take different angles. The first is pretty much fluff. The second recounts how no one from the mainland came to Cardinal Zen's reception and then goes on to detail Cardinal Zen's relations with the local administration. The Hong Kong chief executive is a devout Catholic and is expected to play a role in explaining that Cardinal Zen is 'patriotic' but sometimes 'talks too much'.
Cardinal Zen also said that should the time come when the Holy See breaks off relations with the Republic of China/Taiwan in order to move the nunciature to Beijing, the Holy See ought to apologize to the people of Taiwan.