About 200 people and 16 vehicles participated in the exercise to test how emergency responders dealt with a possible assault by four groups attacking people with axes, the official Xinhua news agency said.
The drill took place at the Urumqi Diwopu International Airport in the Xinjiang capital city of Urumqi, the report said, with the purpose to ensure that such an emergency could be brought under control quickly.
"If a terror attack occurs, airport forces will deal with mobs within three minutes after receiving information and quickly take emergency rescue measures to guarantee the safety of people's lives with the fullest efforts," said airport official Hua Guangrong, according to Xinhua.
In March 2014, 31 people were knifed to death at a train station in the city of Kunming in southwestern China, with four attackers killed, in bloodshed authorities blamed on alleged separatists from Xinjiang seeking independence for the region.
Earlier this month, police in the northeastern Chinese city of Shenyang killed what were described as three knife-wielding "terrorists" from Xinjiang who attacked officers.
Rights groups say that harsh police treatment of Uighurs and government campaigns against religious practices, such as the wearing of veils, is a key factor behind such violence.
The report also said that as of May this year police had broken up a total of 181 "terror groups" in a crackdown that followed a deadly bombing at an Urumqi market in May 2014 which killed more than three dozen people.
