This comes to light after a series of attacks that took place in the region recently.
China said that the violence was carried out by separatists from Xinjiang who had started targeting civilians. Authorities also alleged that the violence was spreading beyond the western region.
Officers who destroyed the hideouts where the bombs were being made also seized the 'bomb making material' that the gang was planning to use. Officals also said that large amounts of partly finished explosive devices were also recovered.
The gang was making these bombs with the intention of inflicting maximum damage by running into crowded places, and running over people.
The gang had watched videos promoting terrorism and religious extremism, it added, and said the group's leader had instructed members to acquire materials from Urumqi and elsewhere in China.