UCA News reports that the archbishop was the choice of the Chinese Government.
The ceremony took place on Friday at Beijing's Immaculate Conception Cathedral.
The Vatican's Archbishop Fernando Filoni said the installation is "undoubtedly a positive sign" because it was recognised by both the Vatican and China.
As the third-highest ranking Vatican official, Archbishop Filoni is backup to the secretariat of state and a long-time expert on China-Holy See relations.
He said: "We hope it is the first page of a ... new reality."
He added that the problems in China-Holy See relations "are well known, and have often been highlighted both by the Chinese side and by our side: they are the conditions that they are asking and for which there is a willingness and an openness (on our side)."
Neither the Vatican nor China has revealed how papal approval for Bishop Li was granted. However a highly placed source told UCA News in Rome that in difficult situations, often the apostolic bull of appointment is not sent but other means are used, such as a letter.
New Bishop Of Beijing Had Pope's Approval Before Ordination (UCA News, 22/9/07)
Beijing Ordination Had Papal Approval
Vatican approves Chinese choice for bishop of Beijing church (International Herald Tribune, 21/9/07)
Vatican Hopeful About New Beijing Bishop (Guardian, 22/9/07)
LINKS (not necessarily endorsed by Church Resources)
Catholicism in China (Wikipedia)
Arrested China bishop dead and buried in 6 hours (CathNews, 12/9/07)
Ordination of Vatican approved China bishop goes ahead (CathNews, 4/9/07)
Pro-pope bishop arrested in China
Another Chinese bishop released (CathNews, 28/9/06)
Released Chinese bishop seeks reconciliation (13/9/06)
Chinese bishop released after 10 years in prison (CathNews, 28/8/06)
Holy See sends envoys to Beijing for secret talks (CathNews, 19/6/06)
China's first Catholic non-profit approved but arrests continue (CathNews, 4/8/06)
Pope declares diplomatic war with China (CathNews, 5/5/06)