Adopting the Critical Discourse Analysis perspective, this study investigates the ideology reflected by the anti-Islam and anti-Muslim discourse in China, the power dynamics revealed by such discourse and how social media discourse differs from and utilises the government discourse. Four ways to disguise the anti-Muslims, anti-Islam prejudice are investigated: appealing to patriotism to demand cultural assimilation; claiming to defend secularism; framing Islam as incompatible with mainstream culture; appealing to consumer rights to reject halal food. Non-Muslims and assimilated Muslims (especially the elites) are found to have the prerogative to dictate who belong to the ingroup, what dietary restrictions are legitimate and whom to blame when undesirable situations arise, while Muslim non-elites are at the receiving end of such dictates. This study also argues that social media discourse expresses antagonism of higher intensity than the government discourse does, and may misappropriate the official narratives to express the interlocutor’s hatred towards Muslims.