Spielberg, the maker of Oscar-winning films like Schindler's List and Jurrasic Park, was derided for "completely living in Sci-Fi world" and not being able to "distinguish dream from reality".

The Hollywood filmmaker had severed links with the Olympics voicing his resentment that China, playing host to the Games, was not doing enough to end bloodletting in Darfur region in Sudan.

Government-backed militia is engaged in a civil conflict with non-Arab ethnic groups in Darfur region, where UN estimated 200,000 people have died as a net result of war, famine and disease. China has a major stake in the oil industry in the East African country and is the largest arms supplier to it.

"The person is completely living in his Sci-Fi world and cannot distinguish dream from reality," said a commentary in China Youth Daily.

Another in Guangming Daily, a leading Chinese newspaper, said, "Mr Spielberg knows nothing about China's endeavour to solve the Darfur issue...He is unqualified to blame the Chinese government".

China's major websites, such as Sina.com, Sohu.com, China.com, and Xinhuanet.com, were flooded with comments decrying Spielberg's action, official Xinhua news agency said.

They demurred at Spielberg's decision, saying he failed to keep his word and linked politics with sports.

A netizen from Hebei province said in an online forum that Spielberg was used as a tool by some people in the West who want to take advantage of Beijing Olympics to attack China. "Mr. Spielberg should not use Olympics as an opportunity to make indiscreet political remarks on China," he said.

"We regret Spielberg's withdrawal, but there's no need to be angry," said another from Shamen, adding, "If we see it from the other aspect, his snub reflects the high expectation of the world on China."

A netizen nicknamed "It's Nothing" said he could not understand and was disappointed by the decision Spielberg had made, but he still appreciated Spielberg's films.

The Chinese are very familiar with Spielberg's movies, ranging from Close Encounters of the Third Kind, ET and Jurassic Park to Saving Private Ryan and Schindler's List.

Xinghe, a writer, said that Spielberg had inspired a lot of Chinese youngsters who love science fiction. "He has great talent. We are regretful over his decision, but we can still enjoy his movies".

Xu Jinglei, a renowned actress and director, said she loves Spielberg's films very much as he creates a style that combines arts and commerce together.

Spielberg was involved in the opening and closing ceremonies of the Olympics.