Beijing, China -- Australia smashed the world record to win gold in the women's 800-meter freestyle relay on Thursday morning at the Beijing Olympics.

Stephanie Rice, Bronte Barratt, Kylie Palmer and Linda Mackenzie completed the 16 laps in 7 minutes, 44.31 seconds to lower the previous record held by the United States by a whopping 5.78 seconds.

China won the silver for its third swimming medal Thursday morning, finishing 1.62 seconds behind the Australians at 7:45.93 to build on the gold-silver take of Liu Zige and Jiao Liuyang in the women's 200-meter butterfly.

The heavily-favored U.S. team of Allison Schmitt, Natalie Coughlin, Caroline Burckle and Katie Hoff claimed the bronze medal at 7:46.33 -- .40 seconds out of second place.