Chinese officials say three buildings built by exiled Uighur leader Rebiya Kadeer will be demolished in the ethnically divided city of Urumqi.
The state-run Xinhua news agency says the buildings have cracks in the walls and the floors are unstable.
But the Uighur American Association in the United States says the demolition is an attack on Kadeer's family.
The exile group says more than 30 members of the activist's family have been living on the upper levels of the Akada Trade Center. It says their only source of income comes from a restaurant in the building.
The Chinese government has blamed Kadeer for instigating deadly riots in Urumqi between the Uighur ethnic minority and the Han ethnic majority.
She denies the charges.
Kadeer is a former successful businesswoman who was once a member of parliament and one of China's richest people.
But she fled the country after spending six years in jail for questioning the government's policies toward China's Uighurs. The mostly Muslim, Turkic-speaking people have long complained of religious and political oppression.
Authorities have not said when the buildings Kadeer built in Urumqi, the capital of Xinjiang province, will be demolished.
Since the July riots, the city has remained tense. Local authorities imposed a curfew there on Monday, after hundreds of people reported being stabbed with syringe needles.