That's a state department lie. Even the US government admits it, and you can find documents about it in the national archives.
China has invited the UN to inspect the prisons, and they always turn down the invitation. But every Islamic country that's sent delegates applaud China's anti-terror policy because of how it focuses on education instead of punishment.
These are ISIS fighters we're talking about, in the US they'd get put in Guantanamo or Abu Grahib, but in China they are given normal facilities where they are taught classes about why you shouldn't behead women or start Caliphates.
These are not ordinary citizens, they are people who have been caught with weapons stockpiles or who are getting training at secret insurgent bootcamps, and China is focusing on rehabilitation of these people. You can't even slightly compare it to the west. The west has never had such a policy, from the French guillotines in Algeria, to the USAID/WHINSEC programmes in Latin America, where they teach mercenaries how to torture people by abuducting the homeless. There's no comparing, China is a hundred times more civilised.