BEIJING, Dec 8 (Reuter) - China enthroned a six-year-old boy as Tibetan Buddhism's new Panchen Lama on Friday, telling the child who was chosen in defiance of the exiled Dalai Lama to be patriotic and work for ethnic unity.

A grand ceremony was held in the Tashilunpo lamasery in the Tibetan city of Shigatse to enthrone Gyaincain Norbu as the 11th Panchen Lama, the second-holiest figure in the Tibetan Buddhist hierarchy, Xinhua news agency reported.

The ceremony left Tibetans with the choice of two Panchen Lamas, Beijing's choice and Gedhun Choekyi Nyima, also 6, who was selected in May by the region's exiled spiritual leader, the Dalai Lama, who lives in India.

State Councillor Li Tieying presided over Friday's ceremony. He flew to Tibet specially to represent the State Council, China's cabinet, Xinhua said.

His presence was both an indication of Beijing's authority over the selection of the boy and of how much importance the atheist government attaches to an age-old religious right.

Li arrived in Tibet on Wednesday and was welcomed by 40,000 residents of Xigaze, both monks and laymen, who lined both sides of the street, waved fresh flowers and shouted greetings as he passed, Xinhua said.

At a meeting with Gyaincain Norbu, his parents and religious teacher on Wednesday afternoon, Li congratulated the six-year-old, Xinhua said.

He said he hoped the new Panchen Lama would inherit and carry forward the tradition of patriotism and devotion to the religion of his predecessor and contribute to the unification of the motherland, unity of all ethnic groups and prosperity and progress in Tibet, Xinhua said.