When you combine them, the logic is very clear: 奥 (Olympic) + 运 (Sports) + 会 (Meeting/Games) = 奥运会 (Olympic Games).
For many in the West, the Olympics are a beloved, major sporting event. In China, the 奥运会 carries a much deeper layer of meaning, deeply tied to national identity, pride, and international recognition. The pivotal event was the 2008 Beijing Olympics (北京奥运会 - Běijīng Àoyùnhuì). This was widely seen within China not just as a sporting event, but as the nation's “coming-out party” on the world stage. Hosting a successful Games was a symbol that China had overcome its “Century of Humiliation” and had re-emerged as a strong, modern, and respected global power. The slogan “One World, One Dream” (同一个世界, 同一个梦想 - Tóng yīgè shìjiè, tóng yīgè mèngxiǎng) captured this sentiment. Unlike the more individualistic focus that can be present in Western media, Chinese coverage of the 奥运会 often emphasizes collective national achievement. The medal count is followed with intense interest, and each gold medal is celebrated as a victory for the entire country. This reflects the cultural value of collectivism, where the honor of the group (in this case, the nation) is paramount. Discussing the 奥运会 is therefore not just sports talk; it's a way to engage with modern Chinese history and national sentiment.
奥运会 is a common term used in all contexts, from formal to informal.