China will set up a national anti-terrorism intelligence system, state media said Monday, as part of changes to a security law expected to be passed this week after an upsurge in violence in the far western region of Xinjiang.

Hundreds of people have been killed over the past two years in Xinjiang in unrest the government has blamed on Islamists who want to establish a separate state called East Turkestan.

Rights groups and exiles blame the government's repressive policies for stoking resentment among the Muslim Uighur people who call Xinjiang home.