If we are looking strictly from logical/cultural POV, Chinese are right. They have to stop religious influence early on, because with Islam it is not separated from society. It makes up political, social and cultural fabric. Which is very differing from one envisioned by those who founded China. So they can't have it. So, yeah, they are basically going to restrict Islam or some more strict aspects of it, which is only seen in maybe one or two school of thoughts. It's also worrying if religious education is consuming children lives, not because of extremism but due to departure from usual criteria that is focused on. Which is science/economy/etc.... It's not only Chinese, but many others seeing this problem in the world, including some Muslim gov't them selves. Beard or Niqab isn't issue in Muslim nations, but the governments pretty much separate Islam from politics.
Reason why Christianity or Judaism isn't targeted like Islam, is because they no longer have impact on culture, society, laws or social fabric. Only influence they have is 'identity' influence, in which white Christians/Jews, maybe Hispanics too, see each other as one 'people'. So if Christianity somehow overtook China, it would become sort of like America. It's really only used for political gain. But, identity is serious. Meaning many of that subset group of Christians identify with each other, especially when it comes to Muslim migration or spread of Islam in their nations, or even strengthening of Islam in the ME(which is historically important to them too).
Islam, too, is used today as political gain by Muslim nations and groups. The reasons some Muslims can't see it is because the tense situation within Islam today and tense political situation in the region, so they really believe that world is teaming up on them, and that either Shia is the righteous group with Sunni's helping enemies of Muslims, or Sunni's the other way. Shia are more pragmatic, less religious, and more secular when it comes to lifestyle. I don't see their faith being major driver of their society, I feel like they have a will to live and enjoy the world. Sunni is more religious and have more faith, so they are more likely the ones to actually try implementing Islam as way of life.
So the world is worried of Sunni Muslims. And Sunni Muslims are going through what other religions went through in past. Where pressure is put by society to put Islam behind and move on, just keep it personal thing. However, this is being played too early,and the political scenes in ME make it much more volatile. And you will people violently oppose this, those being Jihadist groups. But, in the future is looking more and more like it will involve mainstream Sunni Muslims if they can't see how the world is changing and how to react it. They do have a point, though, that there is indeed agenda to rid of religions influence. The debate is whether this is religiously motivated or is just due to world moving on with secular globalization. This debate is decided by individuals and it is what is causing rift.
Now, what I don't get, why Muslims from ME for example, speak of this but will not look at the state in the ME which is horrifying and intense. Everyone is nervous, even stable nations. Because it's not just inter political in the region, it is also seen by some as religious struggle. So they don't know if this gets worse as the future goes on, what will happen. What will happen, is your children are going to be subjected to violence. It's going to be dangerous for Muslims in the future due to everything converging.
I don't think it can be avoided. Because, several reasons, one being that Muslims focused on spreading Islam and think this is some kind of achievement if you increase # of your people. Rather than look within and solve crisis's within the community. Other being Arab governments realize they are a bit late, and now focusing on prevention and internal security. It's on the edge even for them. And then of course you have Western politics, where they feel they can't introduce secularism quickly enough and resorting to bad political moves to maintain interests in the meantime, which are not winning hearts of people. Then most important, it's interpretation of Islam itself. Many Muslims look to how their Prophet(pbuh) handled affairs in the past, and they don't know how he would today. So they resort to orthodox measures, which is not going to succeed, you will have issues with modernization. And this debate itself, relies on faith, because on one hand people do believe, so they assume orthodox measures is needed. On other hand, people have doubts but can't strike a balance or have no control over situation.
So priorities need to change, if you want different future for next generation of people. All the world bears responsibility too, not just Muslims. Otherwise it's a nasty future for all people involved. Likely by 50 years.
that is even better, we gonna have a trade surplus 
