I heard one only need to post an notice on a local newspaper

送交者: HunHunSheng 于 2005-9-01, 16:40:57:

回答: If one's passport was held by US authorties 由 HunHunSheng 于 2005-9-01, 16:35:35:

That is why you often read, or at least used to read
a lot of such notices in Shi Jie Ri Bao etc.

I am not sure if one also need to file a police report
and need local police clearance before filing
for a replacement from CHinese consulates