Beijing confirmed it would not renew press credentials for Ursula Gauthier, of the French news magazine L'Obs.
It said an article she wrote about the unrest in Xinjiang supported "terrorism and cruel acts" that had killed people.
Ms Gauthier called the claims "absurd" and said Beijing was trying to deter foreign reporters in the country.
If her press card is not renewed, Ms Gauthier cannot apply for a new visa, and will have to leave China by 31 December.
