China and the U.S. were both among the top three on the medal tally on Sunday, with China holding six golds and two silvers, and the U.S. two golds, two silvers and four bronzes.

After two gold medals on the opening day in shooting and women's weightlifting, Guo Wenjun snatched the third when she finished on 492.3 points to claim the women's 10-meter air pistol title on Sunday.

Diving duo Guo Jingjing and Wu Minxia defended their synchronized three-meter springboard crown, Xian Dongmei won women's 52kg judo gold and Long Qingquan pocketed another gold in men's 66kg weightlifting.

U.S. swimming superstar Michael Phelps snatched the first of his projected eight golds with a sensational swim in the men's 400-meter individual medley final, and reset his own world record at four minutes 3.84 seconds.

Despite media speculations that China, which won the second largest number of golds after the U.S. in Athens four years ago, would be an arch challenger, Chinese and Americans have patted each other on the shoulders and celebrated their wins.

When Phelps won his gold on Sunday morning, he received warm applauses from flag-waving compatriots and millions of Chinese audience who watched in the Water Cube or on TV.

Chinese and Americans are all looking forward to the men's basketball game on Sunday night, though China is unlikely to win. China and NBA star Yao Ming even said jokingly he would retire if the Chinese beat the U.S. team -- to clarify how difficult it would be to win the game.

Yao and his Chinese team are eying a top eight finish at the Games. But to win or lose, Yao and his sport represent a new milestone in Sino-U.S. relations, like the table tennis that broke the ice on bilateral ties in the 1970s.

The charms of the competitions were among the highlights of a meeting between Chinese President Hu Jintao and U.S. President George W. Bush on Sunday.

Hu congratulated Bush on the victory of Michael Phelps, whom he described as "an excellent athlete of the United States," and expressed belief that Phelps will "achieve more outstanding results" in the Olympic swimming competition.

The two presidents held friendly and candid talks, despite Saturday's tragic incident in central Beijing in which one American citizen was killed and the other injured.