Yes, he did. He had a problem with Peter's over association with Jewish custom. Read Acts. It's the same situation.
Levada's association with the Chinese communist schismatic priests (and his defense of it!)
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http://www.cardinalkungfoundation.org/cpa/openletter.html
III. WHY ARE ROMAN CATHOLIC BISHOPS IN THE UNITED STATES GRANTING
PRIESTLY FACULTIES TO PRIESTS OF THE CPA?
1. Background: In the United States, such as in the New York
and San Francisco archdioceses, Ordinaries have granted priestly
faculties to priests of the schismatic CPA. These priests were allowed
to offer Holy Mass publicly in Roman Catholic Churches and to
administer other sacraments openly in parishes. No specific mention
was made in parish bulletins that the priest in question belonged to
the CPA and no explanation was made about the schismatic nature of the
CPA.
2. Responses to our Inquiries: In response to our inquiry about
this practice of granting priestly faculties to CPA priests:
Archbishop William Levada of San Francisco, wrote: "I would like
to invite the Foundation to be more accurate in its statements
concerning the Church in China and in particular concerning the
priests from China who have been welcomed by the dioceses of this
country. The program of their [CPA priests'] formation and of
their apostolic ministry is being carried out according to directives
received from the Holy See." The archbishop does not specify to
which directives he refers.