BEIJING - China honoured its Olympic heroes on Monday at the start of a week of National Day events, as top leaders rode a wave of patriotism that has surged because of the successful games and the country's first spacewalk and despite a scandal over tainted milk.

In a stiffly formal ceremony in the Great Hall of the People, President Hu Jintao and Vice President Xi Jinping, who oversaw preparations for the Beijing Olympics, praised what they said was China's realisation of a 100-year dream to host the games.

Despite worries over the effects of a global slowdown on China's rip-roaring economy and the milk scandal, China's Communist leaders have been riding a wave of pride and patriotism since the Olympics ended Aug 24, with another boost from the country's successful first spacewalk on Saturday.

Mr Xi said holding the games will keep China on its reform path, as political, military and sports officials paraded in the three-hour ceremony shown live on national television.

'The successful holding of the Beijing Olympics and Paralympics has carried forward the Olympic spirit, improved the understanding and friendship between Chinese people and all people of the world,' Mr Xi said.

'It has ... shown the world the great achievements of reform and opening and the building of socialist modernization.'

Once-banned filmmaker Zhang Yimou, who directed the lavish and spectacular opening and closing ceremonies of the Olympics, broke ranks from the parade of dignitaries to shake hands with Mr Hu.

The Olympics and the spacewalk were the highlights of a tumultuous year for China that has included natural disasters and unrest in the far-western regions of Tibet and Xinjiang.

Premier Wen Jiabao touched on the troubles during an address before a dinner banquet that included many foreign dignitaries.

'We prevailed over the disasters caused by the heavy snow and sleet storms and the devastating Wenchuan earthquake,' he said, referring to a freak storm just before Feb's Lunar New Year that left scores dead and hundreds of thousands stranded during the country's busiest travel period.

A magnitude 7.9 earthquake in May left nearly 90,000 people dead or missing.

'We still face many difficulties and problems in our endeavour to advance socialist modernization but we have full confidence to overcome them,' he said.

This year marks 30 years since China started its economic reforms that turned the country into the world's factory floor and transformed all of its major cities.

The Olympic ceremony, just ahead of China's National Day on Wednesday, was heavy on politics with every member of the Communist Party's Standing Committee - China's top ruling body - on hand.

Mr Hu spoke for about an hour on China's drive to host the games.

'We have stamped China's red seal in the history of the modern Olympic movement,' he said.

The Olympics and the Paralympics were widely praised as well organised, although China was criticised by some for stifling any possible protests against the games.

China's state media have been playing up the Olympics since they ended. Newspapers and state television have also been awash the last several days with stories on China's space program, which carried out the country's first spacewalk on Saturday.

Less prominent in the official media over the last several weeks have been stories on the tainted milk scandal.

There have been questions raised whether local officials delayed revealing until after the Olympics that the industrial chemical melamine, used to make plastics and fertilizer, was found in milk powder and linked to kidney stones in children.

Four infants died and tens of thousands of others were sickened after drinking contaminated baby formula.-- AP