Dao is formless and nameless; Dao can be yin or yang, relaxed or taut, preserved or perished; therefore, it has no fixed name. Though the uncarved log is small, nothing under heaven can subdue it. Although the simplicity of Dao is small and subtle without form, no one in the world dares to subject or employ Dao. If marquises and kings can hold fast to the Dao without action, all things will naturally submit of their own accord, obeying virtue. Heaven and earth harmonize, thereby bringing down sweet dew; if the actions of marquises and kings correspond with Heaven's harmony, Heaven will then bestow sweet dew as a sign of auspiciousness. The people need not be commanded; they will naturally achieve balance on their own. When Heaven bestows sweet dew as an auspicious sign, then all things need no instruction or command; they are naturally harmonized and unified.

At the beginning there was order with names; Shi is Dao. Names exist — this refers to all things. Dao, though nameless, can govern the named; formless, it can govern the formed. Once names have been established, Ji means completion; named things are all filled with desires and emotions; they rebel against the Dao and depart from virtue, thus bringing destruction and disgrace upon themselves. Therefore, one will also come to know it. If a person can emulate the Dao and practice virtue, Heaven too will naturally recognize him. To know it is why one does not fall into peril. When Heaven knows of him, divine spirits will protect and assist; he will no longer be in danger or neglect. The Dao's presence throughout the world is like that of streams and valleys flowing into rivers and seas.