What has been China's reaction to institutions it does not have any grip on? Come up with new substitutes. When the Holy Seat in Rome would not listen to Beijing it came up with its own version of this church, under the auspices of the Roman Patriotic Catholic Association. China even did not mind to intervene in the reincarnation cycle of dalai lamas by selecting a parallel dalai lama, read more here. Now the Chinese government does not agree with the Norwegian Nobel Committee to award the prize to Liu Xiaobo, see here. Therefore it comes with its own Confucius Peace Prize and awarded it to Lien Chan. Read more here.
Richard Kuslan of Aziabizblog has a nice article about it, see here.