Officials in Shaya county issued a notice offering rewards ranging from 50 to more than 50,000 yuan (USD 8 to USD 8,000) for a wide array of information including tips on those growing beards, the Global Times said yesterday.
Xinjiang has been hit by periodic deadly clashes between authorities and members of the mainly Muslim Uighur ethnic minority, among whom beards are a religious and cultural tradition.
China has blamed the violence on separatists with ties to foreign terrorist groups, while rights groups say authorities exaggerate the threat to justify religious and cultural restrictions on Uighurs.
Xinjiang authorities have also launched a campaign labelled Project Beauty, which attempts to discourage locals from wearing veils -- a common practice among Uighur women.
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Xinjiang -- which covers a sixth of China's territory -- is a strategically important region which abuts Central Asia and contains significant oil and gas deposits.
Ilham Tohti, an outspoken Uighur academic who challenged the government's account of the crash, was arrested on terrorism charges this year, provoking an outcry from the US and EU.
Authorities also accused Xinjiang residents of carrying out a stabbing spree in March in the southwestern city of Kunming that left more than 30 people dead.