The highly anticipated meeting of the two senior officials came on the sidelines of the Munich Security Conference amid growing tensions between Washington and Beijing.
The US has been in a state of alarm since a huge white balloon from China was spotted over a series of secret nuclear weapons sites, before being shot down just off the east coast on February 4.
The incident led Blinken to abruptly call off a rare trip to China.
Beijing denies it uses spy balloons and says the craft was for weather research. Subsequently it accused Washington of sending its own espionage balloons over Chinese territory, which the US has denied.
During their encounter Saturday, Blinken “directly spoke to the unacceptable violation of US sovereignty and international law by (China’s) high-altitude surveillance balloon in US territorial airspace, underscoring that this irresponsible act must never again occur,” a State Department spokesman said.
“The Secretary made clear the United States will not stand for any violation of our sovereignty,” he added.
Speaking earlier Saturday at the gathering of world leaders in Munich, Wang had blasted the US reaction to the balloon as “hysterical and absurd”.
In uncharacteristically strong remarks against Washington, Wang said President Joe Biden’s administration had a “misguided” perception of Beijing.
And he accused the United States of trying to “smear” the Asian giant while Washington itself was implementing policies that ran counter to its paradigms such as free trade.
“There are many balloons from many countries in the sky. Do you want to down each and every one of them?” Wang said.
“We urge the United States not to do such preposterous things simply to divert attention from its own domestic problems.”
Asked then if he was planning to meet with the US delegation, Wang had reacted combatively and accused Washington of taking a wrong view of China as a serious geopolitical challenge and a threat to the United States.
“This is a misguided perception of China, and with this perception, the United States is using all of its means to smear and clamp down China, and is co-opting other countries to do the same,” he said.
Wang accused the US instead of “100 percent protectionism, 100 percent self-servingness, 100 percent unilateral action” in its own economic policies, such as the Chips Act that earmarks billions of dollars for subsidies and research in the semiconductor sector.
He added that he hoped Washington would “take a pragmatic and proactive attitude” towards China and restore relations to a “track of sound development”.
After four years of antagonistic relations with China under his predecessor Donald Trump, Biden has made a priority of resetting relations with Beijing, which he describes as Washington’s biggest competitor.
But tensions flared last year after Nancy Pelosi, then leader of the US House of Representatives, visited Taiwan, the self-governing democratic island claimed by Beijing.
Hopes for a reset could be tested again soon, with a high-level Pentagon official arriving in Taiwan for a visit, according to a Financial Times report Friday.
Russia’s invasion of Ukraine has also led Western powers to cast a wary eye on the relations between Russian leader Vladimir Putin and China’s President Xi Jinpingwho call each other “friends”.
Also in Munich, US Vice President Kamala Harris underlined how Washington was “troubled that Beijing has deepened its relationship with Moscow since the war began”.
NATO chief Jens Stoltenberg said “Beijing is watching closely to see the price Russia pays, or the reward it receives for its aggression.”
“What is happening in Europe today could happen in East Asia tomorrow,” he warned.
Stoltenberg also said Moscow’s assault has exposed the dangers of Europe’s over-reliance on authoritarian regimes and should serve as a lesson as the continent pursues relations with Beijing.
“We should not make the same mistake with China and other authoritarian regimes,” he cautioned.
UK Prime Minister Rishi Sunak told the Munich gathering that China “represents a systemic challenge to our values and our interest” and that he would not shy away from taking action to protect Britain.
“We’ll do whatever is necessary to protect ourselves and engage with China on trying to resolve some of these pressing problems where we can,” he said.