A CHINESE terrorist organisation has warned it will create havoc at next month's Olympics and has claimed responsibility for a deadly Shanghai bus bombing in May.

A group monitoring terrorism threats on the internet said Commander Seyfullah of the Turkestan Islamic Party claimed responsibility for several attacks in China less than a fortnight out from the Olympics.

"Through this blessed jihad in Yunnan this time, the Turkestan Islamic Party warns China one more time," Seyfullah said in a video dated July 23, a transcript from a US-based intelligence centre shows.

"Our aim is to target the most critical points related to the Olympics. We will try to attack Chinese central cities severely using the tactics that have never been employed," he said.

The warnings come just a day after Chinese police claimed they cracked a terrorist cell planning to attack Shanghai Stadium where the Australian men's soccer team will open its Olympic campaign on August 7.

Seyfullah claimed responsibility for the May 5 Shanghai bus bombing, which killed three; another Shanghai attack; an attack on police in Wenzhou on July 17 using an explosives-laden tractor; bombing of a Guangzhou plastics factory on July 17, and bombings of three buses in Yunnan province on July 21.