Washington put the institute on the list in 2020 over alleged abuses against Uyghurs and other minority groups, effectively barring it from receiving most goods from U.S. suppliers.
Former Chinese ambassador to the U.S. Qin Gang in an interview last year described it as "shocking" the U.S. would sanction the institute, which he described as essential to controlling fentanyl.
The Chinese embassy in Washington did not immediately respond to a request for comment.
As part of the meeting, the men agreed to cooperate on addressing the source of the opioid fentanyl, with China promising to go directly after specific chemical companies that make fentanyl precursors.
Reporting by Paul Grant and Alexandra Alper; Editing by Doina Chiacu, Chizu Nomiyama and Josie KaoOur Standards: The Thomson Reuters Trust Principles.
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