The foreign ministry said "ulterior motives" may be behind criticism of its links with Sudan.
The director said his conscience would not allow him to continue in his role.
China has strong economic and military ties with Sudan, which campaigners say it should use to put pressure on Khartoum to resolve the Darfur crisis.
A UK newspaper has published a letter from 80 Nobel laureates and artists urging Beijing to help end the conflict.
Mr Spielberg's announcement late on Tuesday is Beijing's first big setback in staging the Olympics, analysts say.
The renowned director, who had been brought in as artistic adviser for the opening and closing ceremonies of the Games, said his conscience would not allow him to continue in the role.
Steven Spielberg, who was once a strong supporter and even the artistic advisor to the Beijing Olympics, but he has now decided to back out. Due to the fact that China is not doing enough to solve the problem in China's strong economic and military partner Sudan, having to do with Darfur. The Chinese say this is the first set back for the Beijing 2008 Olympics.
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