BEIJING - CHINA kicked off its National Day celebrations by highlighting its hosting of the Beijing Olympics and the country's first spacewalk, two hard-won successes in a tumultuous year marked by natural disasters, ethnic unrest and another food safety scandal.

The spacewalk on Saturday boosted a wave of Chinese pride and patriotism stemming from the Olympics, which is still a big news story in the domestic media one month after it ended.

China's Olympic heroes were honoured in a ceremony on Monday that was broadcast live on national television.

Meanwhile, Vice President Xi Jinping, who oversaw preparations for the Beijing Summer Games, praised what he said was China's realisation of a 100-year dream to host the event and said it would keep China on its reform path.

'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 modernisation.'

But Premier Wen Jiabao touched briefly on some of the country's troubles so far this year during an address at 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 February'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.

The 59th anniversary of the founding of the People's Republic of China is Wednesday. This year also marks 30 years since China started the economic reforms that turned the country into the world's factory floor and transformed all of its major cities.

Economic development has been slower to reach far-flung regions like Tibet, where simmering ethnic tensions boiled over in March.

Anti-government riots erupted in the capital of Lhasa, sparking sympathy protests in Tibetan areas across western China.

The latest crisis involves milk tainted with the industrial chemical melamine. China's shoddy food safety record is again under scrutiny after contaminated milk powder sickened some 54,000 children. Four infants' deaths have been linked to bad milk powder.

Mr Wen noted that China is prepared to overcome any difficulties because of the strength of the Communist Party.

'We are confident because we are fully prepared and have taken active measures to address difficulties,' Mr Wen said.

'We are confident because we can benefit from the successful experience in reform and development and rely on our national strength.' -- AP