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The incident spurred the nation's President Xi Jinping -- who was completing a four-day tour to the area -- to vow action against separatist attacks, state news reported.
An explosion rocked the South Railway Station of Urumqi, capital of China's Xinjiang Uyghur Autonomous Region, followed by a knife attack at the same location.
Xinhua announced the casualty toll via Twitter early Thursday, as well as Xi's urging "decisive actions" in response.
"The battle to combat violence and terrorism will not allow even a moment of slackness, and decisive actions must be taken to resolutely suppress the terrorists' rampant momentum," state-owned media reported Xi as saying.
Xinhua, quoting police, also said "knife-wielding mobs" attacked people at one of the station's exits following the blast, which occurred around 7 p.m. Wednesday.
Police evacuated people from the square in front of the station, deployed armed officers and cordoned off entrances to the station, where train services had been suspended.
The station reopened about two hours later. with passengers re-entering under a heavily-armed police presence.