No Smiddy, there have been some ferocious terrorist attacks in China. In a knife attack at Kunming Rail Station (near the border with Myanmar, on June 1, 2014, 8 knife wielding (4 males, 4 women) terrorists killed 29 people and left another 140 wounded. The Chinese govt said the group belonged to a Uygher separatist group, but if you think about it, Kunming in Yunnan Province (which has a centuries old native Muslim population) is just north of Myanmar, which is right next to Muslim Bangladash. In Myanmar the Buddhist majority is really persecuting the Rohingya Muslim minority, and further down the coast in Thailand, much the same thing is occurring, and further south, you have a Muslim majority in Malaysia which connnects to mainly Muslim Indonesia.
The pattern we seem to see in Islamic terrorism is that some individuals are more susceptible to terrorist propaganda than others. There's about 1.6 billion Muslims in the world, if they were all terrorists how would the world deal with that.
Everywhere you go in China, you can see people who (by their dress) identify as Muslim. In Shanghai there used to be a whole street of Uyghur Muslim Restaurants, with breakfast food stalls in the morning. I used to like buying a small loaf of of their bread for breakfast. The whole neighbourhood has been re-developed so they've now gone, but its not hard to find ethnic Uyghur food stalls in various places.
There have been Muslims in China for a 1000 + years ), so the government(s) have some experience in dealing with any problems. I think piks that the Shanghaiist published today illustrate that it is possible to separate the 'wheat from the chaff,' and it gives me some confidence that the Australian government's policies are more positive than the confrontational approach advocated by a certain newly elected senator.