Here's your problem; trying to talk about "the situation of Muslims in China" is incoherent. Islam has been an accepted (though small) part of Chinese culture for many centuries, and it still is. The Uyghurs are highly atypical Muslims in China who don't speak Chinese and don't participate in Chinese culture, instead preferring their own rival culture. That (and rebelliousness) is why they're oppressed.
Uyghurs have problems in China. Muslims don't, except to the extent that negative views of the Uyghurs start bleeding over into negative views of Muslims generally (which is indeed happening).
I've been confused for years about why the Western press seems so determined to demonstrate that it has no idea what it's talking about by representing oppression of Uyghurs as "oppressing people because of their religion". The case just can't be made. It would be trivial to call it "oppressing people because of their race"; that case is easy to make. But I guess the Western audience wouldn't see race-based oppression as being all that villainous?