Despite the growing calls for political reform, President Jiang Zemin outlined only the smallest steps to changing the Leninist system of government.
The country would press ahead with political reform and develop socialist democracy, but he said this would proceed under the precondition of adhering to the four Cardinal Principles.
This was first set forth by Deng Xiaoping at the start of the economic reforms to ensure unquestioned supremacy of Communist Party orders.
Mr Jiang said, however, that ruling the country by law would remain the basic strategy employed by the party.
He added that the party would keep improving the system of peoples' congresses and strengthen their legislative and supervisory work.
'We shall gradually establish a mechanism that will help the decision-makers go deep among the people to see their condition, adequately reflect their will and pool their wisdom so that decision-making will be more scientific, democratic and efficient and will reach a higher level,' Mr Jiang announced.
He said the scope of democracy at the grassroots level would be extended so people could exercise their democratic rights directly.