This chapter examines China’s management of the transnational threat of terrorism, with a particular focus on the terrorism menace along its Western periphery. The rise of terrorism and militancy in the wake of the 9/11 attacks and global jihadism have compelled China to devote more thought to its regional security. 1 This chapter joins the circle of academic literature which seeks to explain the threat of terrorism along China’s borders. This focus is informed by the fact that the sources of terrorism along this periphery adversely affect its internal stability, economic security and transnational security. The Chinese government has had notable success limiting both the frequency and effectiveness of terrorist attacks on its homeland, due to strong and effective military actions. However, given the increasing footprint of transnational jihadi movements in the border regions, in the long term, there is a potential precedent that the terrorism threat may pose a greater problem should regional militants become mobilised or facilitated by transnational jihadi movements such as the Islamic State (IS). Social movement theory in particular posits that violent or reformist movements seek to gain traction whenever they perceive a window of opportunity or vulnerability. Given China’s ‘infinite will’ to stem both highlevel threats arising from Uighur organised separatist militant movements along ethnic lines, as well as other low-level threats posed by resistant or subversive forces with ostensibly political aims to overthrow the state monopoly of power, this chapter will attempt to answer the following questions: How serious is the threat of terrorism along China’s Western periphery? How has terrorism in that region affected China’s security? What is the likely impact of the rise of transnational jihadi movements like IS on China’s security? How has China adjusted its counter-terrorism response as a result of the terrorist threat along this periphery?