SAPPORO, Japan, Aug 20 - The United States delivered a clear warning to their rivals by blitzing China 121-90 at the world basketball championship on Sunday.

The tournament favourites served notice they were deadly serious about ending a six-year Olympic or world title drought with an awesome display to preserve their perfect record.

Olympic champions Argentina blew out Lebanon 107-72 to win their second straight game, while Spain and Germany also improved to 2-0 in the 24-team tournament.

But there was more woe for defending champions Serbia & Montenegro, who were beaten by France and face the prospect of an early exit.

In Sapporo, Miami Heat guard Dwyane Wade led seven U.S. players in double figures with 26 points in a one-sided Group D contest.

Houston Rockets centre Yao Ming scored 21 points but fouled out with 6:08 left as China were powerless to stop a surging U.S. team and slipped to their second loss.

"We worked hard to defend Yao," U.S. coach Mike Krzyzewski told reporters. "He's a just come back from a serious injury and he played with great courage."

The U.S. finished an embarrassing sixth at the last world championship in Indianapolis in 2002 and took bronze at the 2004 Athens Olympics. They won the last of their three world titles in 1994 and their last Olympic gold medal in Sydney six years ago.

Olympic champions Argentina clinically took apart Lebanon, led by 23 points from forward Walter Herrmann in Group A.

BACK SEAT

Dirk Nowitzki took a back seat, meanwhile, as Germany overpowered New Zealand 80-56 to leave the Kiwis in trouble.

Nowitzki had 11 points and eight rebounds in a comfortable Group B win over New Zealand's Tall Blacks in Hiroshima that kept Germany on course for a place in the last 16.

"We played aggressive defense, particularly in the first half, and that's what we're going to have to do tomorrow," said Nowitzki, looking ahead to Monday's showdown with Spain.

Pau Gasol went for 26 points and Rudy Fernandez added 21 for Spain in a crushing 101-57 victory over winless Panama.

France bounced back from a first-day loss to Argentina by edging out Serbia & Montenegro 65-61 in a physical Group A clash.

Olympic silver medallists Italy overcame sharp-shooting Slovenia 80-76 in a see-saw Group D game to improve their record to 2-0. Slovenia slipped to 1-1.

Nigeria, meanwhile, suffered a hangover after Saturday's upset win over Serbia & Montenegro as they were beaten 84-77 by Venezuela in Group A.

African champions Angola overpowered Japan 87-62 in Group B to record their second win and leave the hosts at 0-2.

In Group C, Tiago Splitter scored 18 points as Brazil thrashed Qatar 97-66 to level their record after a shock loss to Australia.

The Boomers were quickly brought down to earth with a 76-68 defeat by Turkey while European champions Greece won their second straight with a 81-76 victory over struggling Lithuania.

In Group D, Carlos Arroyo scored 29 points as Puerto Rico beat Senegal 88-79 to even their record at 1-1 and leave Senegal at 0-2.