"The Internet has become a channel for terrorists to spread extremist religious ideas, provoke ethnic conflicts and advocate separatism," Xinhua quoted an unnamed source from the Cyberspace Administration of China's (CAC) reporting centre as saying.
Over 60,000 websites were blocked by PTA
The person said Twitter-like microblogs and popular instant messaging services such as WeChat were among tools used by terrorists to "brainwash" young women and children, and encouraged the public to provide tip-offs via a telephone hotline.
The centre's source said the most valuable tip off could receive 100,000 yuan, Xinhua reported.
Giving unusual details of their efforts last year, the centre in 2015 received reports of more than 20,000 cases, and handed out 2 million yuan worth of rewards, it said.
The CAC could not immediately be reached for comment during a public holiday in China.
In December, China called for a crackdown on online audio and video recordings used by "terrorists", after the Islamic State purportedly released a Chinese-language song to recruit militants.
The government says it faces a serious threat from militants and separatists in energy-rich Xinjiang, where hundreds of people have been killed in violence in recent years.
Internet growth slows; most people still offline: UN
Rights groups, however, doubt that a cohesive militant group exists there, saying the violence stems from popular anger at Chinese controls on religion and culture.
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