The deadly ethnic riot on Sunday in Urumqi, capital of China’s Xinjiang province, is a wake-up call for Beijing. The violent incident, in which 156 were killed and more than 800 wounded, should prompt the Chinese government to change its policies and address the ethnic tensions in China’s restive border regions, particularly Xinjiang and Tibet. Without immediate policy adjustments, these tensions could mushroom into debilitating low-intensity conflicts, distracting China’s leadership from economic growth and tarnishing the country’s international image.

On the surface, Sunday’s clash erupted after a protest rally organised by the Uighurs turned into a violent riot and rampage. But underneath the rage is a combination of historical animosity, a clash of ethnic identities, cultural prejudices, and Uighur resentment at political domination and economic exploitation. As the largest ethnic group in the region, the Uighurs – who briefly established the self-governing First East Turkestan Republic in 1933 – have chafed under Chinese rule since the region was formally incorporated into China in the mid-18th century. In recent years, relations between Han Chinese and the Uighurs have deteriorated further. On the one hand, in the eyes of many Uighurs, the Han Chinese control the most important positions in the government; encourage Chinese migration that threatens the status of the Uighurs as the dominant ethnic group in Xinjiang; reap the bulk of the benefits from the region’s rich energy resources; and show little respect for the Uighurs’ cultural and religious traditions. On the other hand, the Han Chinese view the Uighurs as harbouring separatist aspirations and being disloyal and ungrateful, in spite of preferential policies for ethnic minority groups. Occasional terrorist incidents blamed on Uighur extremists have stoked anger among ordinary Han Chinese against the Uighurs – and given Beijing an excuse to maintain its tough stance against ethnic separatism.