Pang Zi asked He Guan Zi, "The sage and the divine deliberate together; the Dao and human beings achieve success. I wish to hear how one can attain the essentials of measuring the thoughts of the divine and achieving success." He Guan Zi said, "Heaven is the divine; earth is form. The dampness of the earth gives rise to fire, and the dryness of heaven gives rise to water. If laws are harsh and punishments excessive, the divine becomes damp; when the divine is damp, heaven does not produce water. When tones are confused and sounds inverted, form becomes dry; when form is dry, earth does not produce fire. If water and fire do not arise, then yin and yang cannot form qi (vital energy), measurements cannot establish standards, the Five Victories cannot form patterns, and all things cannot be classified. All endeavors will perish, and all living beings will be in distress; amidst the confusion and chaos, who can know the cause? Heaven and human beings share the same principles; earth and human beings follow the same logic. The virtuous and the unworthy differ in ability, so the highest sages cannot be confused, and the lowest fools cannot be distinguished. Yin and yang are the proper manifestations of qi; heaven and earth are the proper forms and spirits; the sage is the proper embodiment of virtue; laws and decrees are the proper expressions of the four seasons. Therefore, if one principle departs from this order, ten thousand things will fall into disorder there; what is lost may be small, but the damage caused will be great.

What is called "heaven" does not refer merely to the blue expanse of air as heaven; what is called "earth" does not refer merely to solid soil as earth. What is called "heaven" refers to its nature of giving rise to things without being overcome; what is called "earth" refers to its nature of distributing things evenly and not allowing disorder. Tones are the deliberations, sounds are the actions. Tones correspond to the three luminaries of heaven; sounds correspond to the five organs of earth. When form and spirit are in harmony, then vital functions are cultivated properly. When life arises but doubles its root, virtue becomes exclusive and one's knowledge lacks the Dao; above, it disrupts celestial phenomena; below, it extinguishes terrestrial principles; in between, it severs human harmony. Governance gradually deteriorates from beginning to end, so that even when listening, nothing is heard; when looking, nothing is seen; even daylight appears dark. To have righteousness yet lose one's title, to lose one's title and become confused—demanding what others do not possess, expecting from people what they cannot achieve. To judge officials after their tenure without fully recognizing their love and dedication; to distinguish between matters already accomplished without seeking the truth behind them. Empty reputations vie for superiority; purity turns to darkness. Movement and stillness become entangled in disorder, the spirit is severed and reversed. Vital energies lose their proper categories, form separates from correct names, the Five Qi lose their origins, and the four seasons fail to take shape. Faults arise from above, while punishments fall upon those below. In such a world on the verge of collapse, people rush about seeking disaster, open doors to flee blessings; the virtuous are mocked, and fools govern the state. Heaven's retribution appears first, calamities and harms intertwine—among human beings, who can foresee life's omens? Who can know its ultimate end? Those who see the sun and moon are not necessarily wise; those who hear thunder and lightning are not necessarily discerning. Those who deliberate only when matters have already arrived cannot prevent change from occurring. Therefore, those skilled in measuring and responding to change observe the root. When the root is sufficient, all things are complete; when it is insufficient, virtue must be shallow and military strength must decline. Who could possibly use narrow talents to achieve broad virtue and extensive righteousness? Those whose writings are cunning and whose martial actions are decisive yet cannot stop corruption arise from a root that is insufficient. Therefore, the ruler has two forms of governance, and ministers have two systems of control. If ministers do not employ them, the ruler cannot command; if ministers must die, yet the ruler cannot prevent it—this is why sage kings see things uniquely. Therefore, officials are appointed by the ruler: those of seniority remain within, and those who promote harmony serve outside. Those of seniority, when serving as officials, uphold righteousness within the court and steadfastly defend from without. When applying laws, they ensure fairness; legal principles are rooted in humanity and cause no harm. Thus, they establish order between heaven and earth, issuing decrees from a single source. The edict is the means by which vitality spreads without fixed direction to transform all things; the law is the principle that upholds a single path to regulate all things. Laws are for safeguarding within, while edicts are for issuing control outwardly. When laws do not lead to failure and edicts do not harm reason, therefore gentlemen who obtain them revere them, petty people who obtain them exercise caution, and even commoners may preserve their integrity. When the spirit is complete within the mind, and the Dao is fully embodied in form, people achieve standards of conduct, scholars take them as guidelines. By arranging times and ordering qi (vital energies), they assign appropriate names accordingly. Thus, laws may be complex yet yin and yang remain harmonious. The phoenix, a bird of the 鶉 fire, is the essence of yang; the qilin, an animal of Yuanxiao, is the essence of yin; the people are the essence of virtue. When virtue can bring them forth, their essences will all arrive.

Pang Zi said, "How may one bring them forth?" He Guan Zi said, "Heaven and earth, yin and yang—examine them within the self. Therefore, establish the Five Correct Principles to oversee the Five Clarity, ten transformations and nine paths; examination begins with the body itself. The five tones and six pitch-pipes are examined as originating from the self. Five fives make twenty-five, to regulate the world; six sixes make thirty-six, to establish the pattern of the year. Qi arises from the spirit, and the Dao is realized through the spirit. Only the sage can correct his tones and regulate his sounds; therefore, his virtue reaches upward to Taiqing (the Supreme Clarity), downward to Taining (Great Peace), and inward to all spirits. Dew like fat descends, white cinnabar manifests, sweet springs emerge, red grass grows, and all auspicious signs appear. Thus, the people say: "The emperor’s system is divine transformation; the constellations shine with brilliance." In governance, virtue can put an end to warfare throughout the world; in martial strength, one’s arms are unmatched by all under heaven. The distant becomes near, the hidden becomes evident, the great arises from small things, and the numerous emerges from few. Nothing does not begin with the subtle. Therefore, what is gained in achievement cannot be fully described; what is lost in failure cannot be adequately named. To follow this path, neither you can overcome it by inquiry nor I can fully express it in words. The essence of questioning lies in understanding what is near to foresee what is distant, using one principle to govern all ten thousand things. A ruler without desire cannot be relied upon to act; if virtuous people are not employed, the state cannot benefit—this is its essential principle.

Pang Zi said, "I dare to ask about the Five Correct Principles." He Guan Zi said: "There is divine transformation, there is official governance, there is educational governance, there is adaptive governance, and there is practical governance." Pang Zi said, "I wish to hear about their forms." He Guan Zi said: "Divine transformation occurs before anything exists; official governance follows the root of the Dao; educational governance cultivates oneself; adaptive governance does not change customs; practical governance corrects matters at their end." Pang Zi said, "I wish to hear about their applications." He Guan Zi said: "Divine transformation establishes heaven and earth, foresees the four seasons, regulates yin and yang, shifts cold and heat, harmonizes the flow of qi so that all things grow together without harm; all categories of beings are perfected. It is called ‘Mingshi Qi Huang.’ Official governance follows yin and yang, responds to what is about to happen; the earth becomes tranquil and heaven clear, all virtues return to it. It is called ‘Mingshi Shenming.’ Educational governance establishes the four seasons; endeavors and achievements proceed in accordance with the Dao. It is called ‘Mingshi Xiansheng.’ Adaptive governance invites sages and virtuous men to guide the mind and methods; it reveres affairs and fosters harmony. It is called ‘Mingshi Houwang.’ Practical governance invites benevolent sages to guide knowledge; if one diligently cultivates the spirit, assigns officials and establishes order, teaches with hardship for long-term benefit, then legal systems arise. Laws are meant to lead people away from private interests toward public good, unifying understanding so that all follow a single path—not by acting on personal gain to force agreement. Therefore, in the highest governance, one does not rely upon this method; it is called ‘Mingshi Gongbo.’"