Conditions for talks
The envoys at the meeting were Sitar and Zhu Weiqun from China's ruling Communist party's United Front Work Department, and Lodi Gyari and Kelsang Gyaltsen the Dalai Lama's senior envoys.
Xinhua stated that the Chinese envoys had called their government's actions in putting down the protests as "completely correct".
Sitar and Zhu publically repeated what the Dalai Lama should do to "create conditions" for further talks.
"The Dalai side would take credible moves to stop activities aimed at splitting China, stop plotting and inciting violence, and stop disrupting and sabotaging the Beijing Olympic Games."
Tibetan officials had expressed that their priority for the talks was to end the repression that recently hit Tibet.
Thubten Samphel, the Tibetan government-in-exile's spokesman, said on Sunday: "Our immediate concern is for the repression to end and all restrictions on Tibetans should be lifted."
Tibet was invaded by Chinese troops in 1950 and annexed by China a year later.