After being alerted by the sound of gunshots, shocked residents of Taiyuan watched as armed security officers, firefighters and paramedics rushed to close off the city's police academy last Thursday night.

Shortly after, authorities at the scene told media reporters the building had been "occupied by terrorists" just before midnight, adding that dozens of hostages had been taken.

Thankfully the city, capital of Shanxi province, was only staging the nation's second anti-terrorism drill as part of security preparations for the forthcoming 60th anniversary celebrations on Oct 1.