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Since 2001, terrorism has become a frightening phenomenon, posing major threats to stability, peace and security of China. Over the last decade or so, terrorist incidents in China have occurred with increasing frequency as a result of religious and ethnical conflicts between Uyghurs (residing mostly in Xinjiang Uyghur Autonomous Region) and Han Chinese (the ethnic majority in China). Starting as small-scale protests and demonstrations involving violence, these acts have escalated into serious terrorist attacks in Xinjiang, causing considerable casualties in the fifteen years from 2001 to 2015. This study aims to explore the new legal framework against terrorism the Chinese government has adopted from the 2000s onwards. It investigates the development, formation and functionality of this mechanism within the context of the Party’s new political agendas of building a ‘harmonious society’ and enforcing the ‘rule of law’ to govern the state. By assessing the rhetorical and practical changes in China’s recent counter-terrorism laws and practices, it concludes that China has formed a more punitive legal framework that fights terrorism since 2001. It is pursued in the form of criminalizing a new suite of terrorist offences, expanding police powers, intensifying punishment on terrorism-related crimes, and enhancing international cooperation against terrorism.