"The attempt to take this issue as an excuse to boycott the Olympics is inappropriate and unpopular," Liu said on the sidelines of the Communist Party congress in Beijing.
Human rights groups had called on China to use its influence on the military leadership in Burma, which was using force against demonstrators, because the Bejing has close economic and military contacts with Burma.
There had been earlier demands to boycott the Olympics over China's roll in the Darfur conflict.
"All the political issues which don't have anything to do with the Olympics should not be brought in connection with the games in Beijing," Liu said.
He praised the way human rights were going in China despite reports of forced relocations for Olympic building projects and tough action against regime critics.
The preparations for the Olympic summer games had improved the people's wellbeing, Liu said, adding China had stuck to its promises made to the International Olympic Committee (IOC) when it was selected as host.
Examples of improvements were new rules on working conditions for foreign journalist and polls of the population on preparations for the Olympics.