WRAPUP 1-China calls Xinjiang riot a plot against rule

* At least 3 die, vehicles burned, smashed in Urumqi

* Traffic banned to prevent further unrest

* City "basically under martial law" - resident

* Exile groups deny riot was a plot

By Chris Buckley

BEIJING, July 6 (Reuters) - China has called a riot that shook the capital of western Xinjiang region on Sunday a plot against its power, after at least three people died in the eruption of ethnic unrest and authorities launched a crackdown.

Hundreds of locals took to the streets of the regional capital, Urumqi, some burning and smashing vehicles and confronting police and anti-riot troops, following a protest there against government handling of a clash between Han Chinese and Uighur factory workers in far southern China in late June, when two Uighurs died. [ID:nHKG364598]

On Monday morning "the situation was under control", the state-run Xinhua news agency reported. There were no immediate reports of violence in other parts of Xinjiang.

Officials ordered traffic off the streets in parts of the city of 2.3 million residents -- 3,270 km (2,050 miles) west of Beijing -- to ensure there was no fresh unrest, Xinhua added.