"I think China's an emerging power in basketball," the U.S. coach said. "I think they'll be a force in 2008."

China's Yao Ming celebrates their win against Senegal during the first round of the world basketball championships in Sapporo August 23, 2006. [Reuters]

The Chinese will host the 2008 Olympics in Beijing, and U.S. Olympic Committee officials already have predicted a strong performance from the home country in a number of sports.

But it would come as a surprise on the basketball court, where the Chinese long have been overmatched by powerful teams from the Americas and Europe. China never has finished better than eighth in the Olympics or the world championships.

The Chinese hoped to do better in Japan. In a China Daily story on the eve of the tourney, star center Yao Ming promised the team would advance to second round, but China was 0-3 after a 90-87 overtime loss Tuesday to Puerto Rico.

Yao helped China to its first win Wednesday, leading his team to a 100-83 win over Senegal and leaving it with a chance of advancing to the second round.

China opened the tournament by falling to 2004 Olympic silver medalist Italy before a 121-90 loss to the United States in its second game.

That was the Americans' second easy victory over the Chinese this month after winning 119-73 in an exhibition in Guangzhou, China. But Krzyzewski saw enough to convince him China is a team on the rise.

"There's a passion in that country for basketball," Krzyzewski said. "You can just see it in people's eyes. I think people enjoy basketball in the other places we've been. In China, it was like they were craving it. You get that type of atmosphere with that populace and that athletic ability, and something really good is happening."

But not quite yet. Against Puerto Rico, China couldn't hold a late lead after Yao fouled out.

"Europe and South America have some more players coming out," Yao said after the loss to the Americans. "You can see in the last 10 years, teams like Argentina and some of the teams in Europe so many, I can't say. So, we need to pick it up. Not just China, but Asia. We have to pick it up."

In Yao, China has one of the best players in the world at his position. And Krzyzewski said forward Li Jianlian, the MVP of the Chinese Basketball Association, could be an NBA lottery pick.

The key for China's development remains better perimeter play. The Chinese were outscored by 27 points behind the 3-point arc against Italy, and they committed 25 turnovers against the United States _ after turning it over 34 times during the exhibition game.

Playing against better competition would help. It has made a huge difference for Yao, in the way he plays and the way he acts.

Krzyzewski said he never had seen Yao as fired up as in Sunday's game. The Houston Rockets All-Star twice screamed at officials after calls and frequently rose from the bench to yell encouragement to teammates after fouling out.

He was just as emotional Tuesday, when he fouled out with 29 points in 32 minutes and blasted the refs.

Yao was hardly that vocal when he came to the United States in 2002 as the 21-year-old No. 1 pick in the NBA draft. It's just one way he has benefited from competing against the world's best players on a nightly basis.

The rest of the Chinese players practice only against each other. Krzyzewski agreed with Dallas Mavericks assistant Del Harris, who coached China at the 2004 Athens Olympics, that the players only can improve by testing themselves in other leagues.

"You've got to test your skill against the best, and then your skill will rise," Krzyzewski said. "You just can't play against each other.

Even so, the Chinese seem much more athletic and have more playmakers than they did two years ago in Athens.

"It's all there," Krzyzewski said. "They're going to be really good."