The highest virtue does not dwell on virtue; Shangde refers to the ancient sovereigns of prehistoric times who had no titles or names. Their virtue was so great that it could not be surpassed, hence they are called Shangde. Not dwelling on virtue means that one does not impose moral instruction upon the people, but rather follows nature's course, nurturing human life and vitality. Their virtue remains unseen, hence it is said they do not dwell on virtue. Therefore, this is called true virtue. This means that their virtue harmonizes with heaven and earth; the harmonious energy flows freely, thus preserving the people's moral integrity. Lower virtue does not lose virtue; Xiaode refers to sovereigns who had titles and posthumous names. Their virtue did not reach the level of Shangde, hence they are called Xiaode. Not losing virtue means that their virtue is visible and their achievements can be praised. Therefore, it is called the absence of virtue. Because they had names and titles associated with their person. The highest virtue is non-action; meaning following the Dao in tranquility, without exerting any effort or action. and does not act with intent; meaning they do not act for the sake of titles or names. Lower virtue acts; meaning issuing teachings and decrees, implementing governance and affairs. and does so with intent, meaning they do so to gain titles and names for themselves.

The highest benevolence acts; Shangren refers to a ruler who practices the highest level of benevolence, whose benevolence is supreme, hence called Shangren. One who acts does so by bestowing kindness upon others, and yet without intent; when achievements are accomplished and matters established, there is no need to cling to action. The highest righteousness acts; acting with righteousness to make distinctions or judgments, and does so with intent; taking actions for one's own benefit, killing people to establish authority, exploiting the subordinates for personal gain. The highest propriety acts; referring to a ruler of supreme ritual propriety, whose rites are unparalleled, hence called Shangli. One who acts establishes the rites and institutions, ordering ceremonies and displays of dignity, and yet no one responds; meaning that rites have become ornate in appearance but decayed in substance, filled with artificiality and complexity. Any action taken deviates from the Dao and cannot be responded to properly. Then they would raise their arms and cast it aside; meaning that the excessive complexity of rites cannot be properly responded to, leading to anger and contention between superiors and inferiors. Therefore, when the Dao is lost, virtue follows; meaning that as the Dao declines, moral instruction arises in its place. When virtue is lost, benevolence follows; meaning when virtue declines, acts of kindness and love become evident. When benevolence is lost, righteousness follows; meaning as benevolence declines, distinctions and principles of righteousness become clear. When righteousness is lost, rites follow; meaning when righteousness declines, the rites of courtesy and exchange are lost. Rites are a thin covering over loyalty and trust; meaning rites abandon the fundamental in favor of superficialities, causing loyalty and trust to gradually decline. And the beginning of disorder; rites value form over substance, hence upright and sincere people become fewer day by day, while crookedness and disorder increase.

Those who claim prior knowledge are the flowers of the Dao follows nature; those who do not know but pretend to know, called "qianshi," appear during times when people have lost the Dao. They grasp only its superficial aspects, and the beginning of foolishness; meaning those who claim prior knowledge are pioneers in spreading ignorance and darkness. Therefore, a great man dwells in thickness; a great man refers to a sovereign who has attained the Dao. To dwell in thickness means to place oneself among sincerity and simplicity. Does not dwell in thinness; meaning one does not place oneself against the Dao, becoming entangled in worldly complexities and disturbances. Dwells in reality; means to dwell in loyalty and trust. Does not dwell in superficiality; meaning one does not value ornate or empty words. Therefore, discard the former and take the latter. Discard superficiality and thinness, and take sincerity and substance instead.