答案：C

本题考查定语从句。As is reported in the newspapers 是非限定性定语从句，as指代talks between the two countries are making progress，在从句中作主语。　本题易错选A、C两项，错选A的原因是误以为该题是以it引导的主语从句。但本题正确的主语形式应该如下：It is reported in the newspapers that talks between the two countries are making progress.错选C项的原因是误以为本题是that引导的主语从句，但that引导主语从句时，从属连词that在主语从句中不作任何成分，只起连接从句的作用。