But the Chinese people are getting religious. And the party is playing catch-up.

For the first time in more than a decade, the Chinese government has issued a detailed set of regulations dealing with all kinds of religious activities. The new rules are striking, as they represent official acknowledgment of the positive role religion can play in the affairs of the state.

The regulations cover lots of ground. For the first time, they permit Chinese religious organizations to officially set up social services, including hospitals, nursing homes and other charities.

"This has been in practice for many years, but they are now included in the new regulations," says James Tong, a political science professor at the University of California-Los Angeles, who studies religion in China.

Tong says the new legal reality for religious groups in China "is a far cry from the Maoist period," when party leaders took a purely antagonistic approach toward religion.