Its totally wrong and baseless.My business partner is now in ChinaI spoked to him on skype ..He says its totally wrongevery muslim is free to keep fast .its seems Indian agent propaganda.
Depends on region. Their are Muslims ethnic chinese communities called Hui.
Theses are well integrated into chinese society and well regarded for their strong work ethic and honesty.
They are spread through out China in almost all major towns and cities. Concentrated in the Han North eastern heartland.
Historically they have reached highest position in society. Such as famous admiral the Huwei Eucnich Zeng He.
http://en.wikipedia.org/wiki/Zheng_He
This is largest segment of Muslims in China(47% OR SO) and live along side Han chinese. They were converted Han chinese by travelling arab merchants.
Notably by Sahaba Saad bin Abi Waqas during the reign of Caliph Hazrat Usman Ghani:razi:
The other major group are the Muslims of Eastern Turkmenistan now called Xingiang province.
This area has essentially been colonised by Han chinese. The native Turkmen Muslims see themselves as a separate nation. They suffer routine harassment from the government in China, who believe Xinjiang is essential for future of China.
These restrictions are usually aimed at the second group, in order to I guess crush their aspiration towards independence or autonomy etc.