Blackmail is often the currency of dictatorship and tyranny. So it is with Beijing. The prevailing rate on relations with Beijing is measured in political distance from Taiwan. The more willing a nation is to distance itself from Taiwan, and adopt the "one China" mantra, the better its odds in economic relations with Beijing, as well as the prospects of making money in China. No mantra, no business.
However, the currency used in Beijing's dealings with the Vatican is different, because, frankly, the money isn't as important to the Vatican. It doesn't need a new "trading partner," it is not interested in importing cheap Chinese goods, or establishing a line of new factories there for producing cheap products, or selling Bibles to a billion Chinese (the Vatican would probably donate those). The traditional blackmail doesn't work for Beijing.
Therefore, Beijing has moved to Plan B, blackmail involving the souls of Chinese Catholics, the lure of more than 1 billion unconverted. Hong Kong officials were reporting before the Pope's funeral that the Vatican was willing to cut ties with Taiwan in order to make progress with Beijing on the plight of millions of Catholics in China. The comments were profoundly disturbing, as though the concept of throwing away 23 million Taiwanese for the sake of Chinese Catholics was blackmail worthy of consideration.
http://www.taipeitimes.com/News/edit/archives/2005/04/15/2003250637