While this article is a few years old, it is still quite relevant to what is going on in China. To summarize its much more complicated than just the Hui and Uighur paradigm, more on this soon. For now here is an excerpt the relevant article:
After a week in Shadian, I moved to Dali Autonomous region in northwestern Yunnan. I met Zhang Hongyun, a teacher at Dali Muslim Middle School in Wuliqiao village. Zhang said he could never have imagined that he would openly practice and teach Islam in China. During the Cultural Revolution, his grandfather memorized hundreds of Islamic scriptures before they were destroyed and kept Islam alive in his village through word of mouth. Now, at the age of 35, Zhang publicly runs prayers and religious classes as a respected member of his community. He has studied Arabic in Beijing, traveled to Malaysia, and he made his pilgrimage to Mecca in 2007.
“I have seen Islam change drastically over the years through the eyes of my grandparents, my parents, and now in my own life,” said Zhang. “Islam can flourish in China.” He sits cross-legged in a concrete classroom, looking indistinguishable from the average Han Chinese citizen save for the white prayer cap perched on his head.