BEIJING - China's military staged an anti-terror drill in an eastern city Saturday that state media said was part of the country's security preparations for the 2008 Olympic Games.

2008 Beijing Olympics logo.[AFP]

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The "Great Wall Number Three" exercise, the country's third "state-level" anti-terror drill, took place in Qingdao city, according to Xinhua news agency.

"This exercise was conducted under the guidance of the central leadership... and was carried out against the backdrop of a potential terror attack in China in the form of a biochemical strike," Xinhua reported.

The drill was focused on crisis handling in a city in the event of an attack and was conducted according to the needs of security measures for the 2008 Olympics, the report said, without further elaboration.

An earlier anti-terror drill was conducted, also in Qingdao, in April, at the venue for sailing events at the Olympics.

Qingdao is a city of seven million people in the eastern province of Shandong, about 500 kilometers (300 miles) southeast of Beijing.