Nearly 18 terrorists were killed and 17 others arrested as China launched its biggest counter-terrorism raid in the restive northwestern region of Xinjiang, a lawmaker said in Beijing on Tuesday.

After receiving a tip-off from local residents, China's police carried out the raid on a terrorist training camp in January.

The East Turkestan Islamic Movement, a group that the United Nations in 2002 labelled a terrorist organisation, ran the training camp. It is believed that the al Qaeda has trained more than 1,000 ETIM members.

People of various ethnic groups provided clues linking to the terrorists and they volunteered to help the police pursue a number of others after the gun battle on January 5, said Xinjiang lawmaker Mutuola Musha, who is in Beijing to attend the annual session of the 10th National People's Congress.

Musha, who has been a policeman in Xinjiang for 40 years, said the police mainly target the masterminds, hardcore and criminals engaged in violent terrorist activities, and are cautious not to infringe on the rights and interests of the local people, Xinhua news agency reported.

Muslim Uygur militants, whom Beijing calls terrorists, have been waging a low-intensity struggle to make Xinjiang, formally established as an independent state called 'East Turkistan' on October 1, 1955.

In the January raid, the police also seized 22 hand grenades and more than 1,500 unfinished others, as well as guns and other homemade explosives. The police found the terrorists operate several mines near the camp to raise fund.

One policeman was killed by the ultras and another wounded in the gun battle.