Prime Minister Kevin Rudd will meet with Australian business groups in China before attending the opening ceremony of the Olympic Games in Beijing.

Mr Rudd arrived in the Chinese capital on Thursday and attended the official flag raising ceremony at the athletes' village and gave the national team a pep-talk at the official reception.

He handed the Australian flag to the opening ceremony flag-bearer, rower James Tomkins, and told athletes the entire nation was behind them in their quest for Games glory.

He is due to open Austrade's Business Club of Australia on Friday afternoon and then join other foreign leaders, including US President George Bush, at the Games opening ceremony.

On Thursday night Mr Rudd told Australia's Olympic athletes the nation will go "through the roof" when the first medal is won in Beijing.

"Today the nation honours you for your great achievement in making it into this Australian Olympic team," he said.

"And today the nation has one simple message for you and this is: `on every day in every event at every turn the entire Australian nation is behind you, every man, woman and child'.

"'As you march into the stadium tomorrow night, know this: the eyes of the all Australians are on you, from Torres Strait to Tassie, from Cottesloe to Coogee, from both city and bush, from our first Australians to those who have just become Australians'.

"'We are all behind these great Olympians of Australia, 100 per cent of the way'."

Also lending their support to the athletes was Crown Princess Mary and Crown Prince Frederik of Denmark, former prime minister John Howard, Sports Minister Kate Ellis and Trade Minister Simon Crean.

Former Tasmanian Princess Mary, who met Prince Frederick at the Sydney Olympics, said the night had a warm atmosphere.

"It's quite overwhelming and all these people are coming up and are so excited to meet us," she said.

"It's a lovely and relaxed atmosphere to take a moment to chat with some of the Australian athletes and hear about their expectations and how they see the city and the facilities, and I'm actually looking forward to competition."

However, Princess Mary said her allegiance was not divided.

"My allegiance is with Denmark, but as Denmark and Australia don't compete so often, I also follow the Australian athletes as closely as I possibly can."

Australia pop star Natalie Bassingthwaite sang the Australian anthem to the athletes.