Laozi said: "Clarity and emptiness are the brightness of Heaven; non-action is the constant principle of governance. Abandoning grace and favor, setting aside sainthood and wisdom, excluding excellence and ability, discarding benevolence and righteousness, extinguishing artificial events, rejecting flattery and eloquence, prohibiting deceit and falsehoods, then those who are virtuous or lacking virtue will all be equal in the Dao." Stillness brings unity; emptiness brings understanding. The highest virtue of non-action embraces all things. The way of stillness and emptiness endures as long as Heaven and Earth. Its subtle power pervades everything, yet it governs nothing. The twelve months move in cycles, beginning anew after completing a full round. Metal, Wood, Water, Fire, and Earth are mutually harmful in their forces but interdependent in their principles. Therefore, extreme cold harms things, but without cold it would not be possible; extreme heat harms things, but without heat it would not be possible. Thus, what is considered acceptable and unacceptable are both acceptable in the ultimate sense. Hence, the Great Dao has no absolute acceptability or unacceptability—it resides in its principle. When one sees something as acceptable, one does not rush toward it; when one sees something as unacceptable, one does not flee from it. Acceptable and unacceptable stand side by side, being external and internal to each other. The essential principle of all affairs must begin with unity; time serves as their standard. From ancient times to the present, this has never changed—it is called the Principle of Heaven. The sovereign holds to the great clarity, and those below make use of its light. The Dao gives birth to all things, arranging them according to Yin and Yang; it transforms into the four seasons and divides into the Five Elements. Each finds its proper place and moves with the passage of time. Laws and measures remain constant, reaching even those without ability. The upper path does not waver; ministers unite in purpose. The way of Heaven and Earth is non-action yet complete, yielding results without seeking—"thus one knows that non-action brings benefit."

Laozi said: "The uncarved (pǔ), in its utmost greatness, has no form or shape; the Dao, in its utmost greatness, is beyond measurement. Hence, Heaven is round but does not conform to a compass, Earth is square but does not fit within a carpenter's square." From the past to the present is called "zhou"; the four directions and above and below are called "yu." The Dao resides within them, yet no one knows its location. Therefore, those with limited vision cannot be spoken to about greatness; those with narrow knowledge cannot discuss ultimate truths. Those who harmonize the Dao and things together have no grounds for mutual criticism; therefore, although the laws and systems of the Three Sovereigns and Five Emperors differed in form, their attainment of the people's hearts was one. Rules, compasses, and measuring lines are tools of skill, but they are not the source of skill itself. Therefore, without strings, even a master like Shi Wen could not produce music; yet with only strings, one cannot create sorrow alone. Thus, strings are the tool for sorrow, but they do not themselves cause sorrow. When the spirit and harmony reach their height, they flow freely between mind and hands. Letting one's intent express the spirit, conveying emotion through the strings—this is something a father cannot teach his son, nor can a son learn it from his father; this is the inexpressible Dao. Therefore, solemnity is the ruler of form, and stillness is the master of sound.

Laozi said: "The way of Heaven and Earth takes virtue as its foundation; Dao gives it its mandate, and things regulate themselves naturally." It is extremely subtle and inward, not considering affairs as precious; thus it establishes itself without relying on achievement. It does not regard position as noble, becomes prominent without needing a name, maintains dignity without requiring ritual, and achieves strength without using military force. Therefore, the Dao establishes itself without teaching, shines clearly without scrutinizing. The reason the Dao establishes itself without teaching is that it does not rob people of their abilities; the reason it shines clearly without scrutinizing is that it does not interfere with their affairs. Those who impose instruction upon the Dao go against virtue and harm things. Hence, Yin-Yang and the Four Seasons, Metal, Wood, Water, Fire and Earth—all share the same Dao but differ in principle; all things share the same sentiment yet take different forms. The wise do not teach one another, and the capable do not accept instruction from each other. Therefore, the sage establishes laws to guide the people's minds, allowing all things to follow their natural course. Thus, those who live have no virtue to claim, and those who die hold no resentment. Heaven and Earth are not benevolent; they regard all things as straw dogs. The sage is not benevolent; he regards the common people as straw dogs. Compassion, love, benevolence, and righteousness are the ways of narrow-mindedness. Those who are narrow-minded enter the great and become lost; those who focus on the near travel far and become confused. The way of the sage enters the great without becoming lost, travels far without confusion. Always maintaining emptiness and self-guarding, one can attain the ultimate—this is called Heavenly Virtue.

Laozi said: "The sage covers as Heaven does and bears as Earth does; the sun and moon shine upon all. Yin and Yang harmonize, the four seasons transform, he embraces all things without distinction, regarding nothing as old or new, distant or close. Therefore, one who can emulate Heaven follows its way—Heaven has no fixed time, Earth has no single material, people have no single task; thus, endeavors take many forms and actions proceed in diverse ways." Therefore, those who employ military force may be either light-hearted or cautious, greedy or upright. These four traits are opposite and cannot be unified: the light-hearted wish to act quickly, the cautious wish to hold back; the greedy desire to take, while the upright do not benefit from what is not rightfully theirs. Therefore, the brave can be ordered to advance and fight, but not to hold a firm position; the cautious can be entrusted with defense, but not with confronting the enemy directly. The greedy can be sent on attacks to seize territory, but cannot be trusted to share spoils fairly; the upright can be relied upon to maintain their proper share, but should not be ordered to pursue gains aggressively. The trustworthy can be given a covenant to uphold, but are unsuited for adapting to sudden changes. These five types—brave, cautious, greedy, upright, and trustworthy—the sage employs together according to the abilities of each individual. Heaven and Earth do not favor any single thing; Yin and Yang do not produce only one kind. Therefore, the sea does not refuse small streams to achieve its vastness, mountains and forests do not reject crooked or bent trees to attain their grandeur, and a sage does not dismiss the words of a woodcutter to broaden his renown. To hold fast to one corner and neglect the ten thousand directions, to take one thing and discard the rest, is to gain little and achieve shallow governance.

Laozi said: "What Heaven covers and Earth bears, what the sun and moon illuminate—though forms differ and natures vary, each finds its own place of peace. What brings joy to become joy is precisely what may bring sorrow; what brings safety to be safe is exactly what may lead to danger." Therefore, the sage in governing the people allows each to follow their nature, dwell in peace, act according to their abilities, be suited for what they are fit for, and receive what is appropriate. In this way, all things become one in harmony, with no cause for mutual transgression. All things under Heaven are neither noble nor base; by regarding what each values as valuable, nothing is without nobility. By regarding what each deems lowly as base, nothing is without baseness. Therefore, not exalting the virtuous means not casting fish into trees or sinking birds in deep waters. In the past, when Yao ruled over all under Heaven, Shun was Minister of Education, Xie was Minister of War, Yu was Minister of Works, Houji was in charge of agriculture, and Xi Zhong was chief craftsman. In guiding the people, those living by water fished, those among the forests gathered, those in valleys herded livestock, and those on hills farmed. The land suited its tasks; each task required suitable tools; each tool was made from appropriate materials. Those near marshes wove nets, while those on slopes tilled fields. In this way, the people outside could exchange what they had for what they lacked, and trade their skills for what they were unskilled in. Therefore, few rebelled and many obeyed, like the wind passing through reeds—suddenly affecting them. Each responded according to its clarity or muddiness; all things naturally moved toward what was beneficial and avoided what was harmful. Therefore, neighboring states could see each other, and the sounds of chickens and dogs could be heard across borders, yet people's footprints did not cross into the territories of feudal lords, nor were chariot tracks found beyond a thousand li; all dwelled in peace. Therefore, a chaotic state appears prosperous, a well-governed state seems empty, a perishing state feels insufficient, and a surviving state feels abundant. "Empty," does not mean there are no people, but that each person upholds their duty. "Prosperous," does not mean a large population, but that all strive for what has yet to be achieved. "Abundant," does not mean great wealth, but rather restrained desires and few affairs. "Insufficient," does not mean the absence of goods, but that the people are few while expenses are many. Therefore, the laws of former kings were not created arbitrarily, but followed naturally; their prohibitions and punishments were not imposed capriciously, but maintained as a safeguard—this is the way of the highest virtue.

Laozi said: "To govern the world with the Dao is not to change human nature, but to follow and cultivate what people already possess. Therefore, following brings great harmony; creating from nothing leads to small achievements." In ancient times, those who managed rivers followed the natural flow of water; those who cultivated crops did so according to the suitability of the land; and those who waged war acted in accordance with the people's desires. He who can follow these principles will have no equal under Heaven. Things must have their natural course, and human affairs require governance. Therefore, the laws established by former kings followed the nature of the people and provided appropriate forms and regulations. Without understanding human nature, one cannot guide them through education; without recognizing their capacities, one cannot lead them to follow the Dao. Human nature possesses the potential for benevolence and righteousness. Without laws established by sages, people cannot be directed toward proper conduct. By prohibiting wrongdoing based on what they themselves dislike, punishments need not be applied—yet authority acts as if by divine power. When governance follows human nature, all under Heaven will obey; when it goes against nature, even the most elaborate legal codes remain unused and ineffective. Virtue and Dao are the foundation of achievement and renown; they are what the people cherish in their hearts. When cherished, achievements and fame naturally arise. Ancients who were skillful in being rulers emulated the rivers and seas. The rivers and seas achieve their vastness through non-action, and their breadth by being low and receptive; thus they endure for a long time, becoming the valleys of all under Heaven. Their virtue is therefore sufficient. Through non-action they can gather a hundred streams; without seeking, they attain what they need; without traveling, they reach their goal. Therefore, one who takes over the world remains at peace and undisturbed. Not indulging in self-glorification brings wealth; not seeking personal recognition brings clarity; not being conceited brings longevity. By placing oneself in the position of the unremarkable, one becomes ruler over all under Heaven. Not contending means none can contend with him; never claiming greatness allows true greatness to be achieved. Rivers and seas are close to the Dao, hence they endure for a long time and remain in harmony with Heaven and Earth. Upholding justice and cultivating the Dao means that when achievements are made, one does not claim them as personal accomplishments. Not claiming them brings strength and stability; being strong and stable without oppressing others—when the Dao is profound, virtue becomes deep; with deep virtue, fame and achievement naturally arise. This is called profound virtue indeed! How distant it is! It is contrary to all things! The world has a beginning, yet none know its principle; only the sage can understand the reason. It is neither strong nor weak, neither female nor male—it gives birth without dying. Through it Heaven and Earth are formed, Yin and Yang take shape, and all things come to life. Therefore, Yin and Yang have roundness and squareness, shortness and length, existence and extinction. The Dao gives them their mandate; they sink into obscurity yet shine in affairs. In the mind it is very subtle, but in relation to the Dao it is perfectly appropriate. Life and death share the same principle; all things undergo transformation, harmonizing with one single Dao. Simplify life and forget death—wherever you go, longevity follows. Abandon affairs and words; be cautious in non-action. Upholding the Dao with thorough care, one does not dominate things. It is extremely subtle and formless—the beginning of Heaven and Earth. All things share the same Dao yet take different forms; it is so subtle that nothing can contain it, thus it can fully nurture all beings. Its greatness has no outer limit, hence it shelters all things; its fineness has no inner boundary, therefore it is most precious to all things. The existence of life arises from the Dao; the stability of form comes from virtue. The measure of the ultimate Dao is to remove preference and aversion, free from knowledge or intention. One should ease one's thoughts and harmonize the mind, avoiding any contradiction with the Dao. Heaven and Earth, when unified, form One; divided, they become Two. When interacting and uniting again, the upper and lower remain in harmony without deviation. Unified as One, divided into Five, yet returning to unity—this must conform to compasses and squares. The Dao is the most intimate and cannot be estranged; it is the nearest and cannot be distant. To seek it in what is near, one goes forth yet returns again.

Laozi said: "He who is an emperor has a name, yet none know his true nature. An emperor values virtue; a king esteems righteousness; a hegemon is constrained by reason." The way of the sage has no attachment to things. When the Dao is held in company, then wisdom is employed; when virtue is weak, then form is relied upon; when understanding is shallow, then scrutiny is used. Those who rely on wisdom cause confusion in the heart; those who depend on punishment provoke resentment between ruler and subject; those who rely on scrutiny prompt subordinates to feign virtue in serving their superiors, which leads to corruption. Therefore, the sage follows Heaven and Earth in transformation; his virtue covers as Heaven does and supports as Earth does. Guiding by the seasons, his nurturing is abundant. Abundant nurturing brings order; even with divine wisdom or holiness, how can people alter it? By discarding intellect and cleverness, punishments are reduced; by returning to stillness and quietude, things will naturally become upright. The Dao as a ruler is like the ritual officiant—solemn and silent, yet all under Heaven receive its blessings. One person receiving it feels no deficiency; ten thousand people receiving it feel no limitation. Therefore, to place great emphasis on grace or on violence is to go against the Dao. Those who emphasize grace give out gifts—rewarding the unmerited with generous rewards and bestowing high ranks on those who have not labored. In this way, officials neglect their duties, while idlers eagerly seek advancement. Those who resort to violence act through arbitrary punishment—killing the innocent and subjecting those on the road to corporal punishment. In this way, self-cultivation is discouraged from being virtuous, while those engaging in wicked deeds lightly defy authority. Therefore, emphasizing grace gives rise to deceit; resorting to violence brings about disorder. A society of deceit and disorder is the wind that leads to a nation's downfall. Therefore, in a state where punishments are carried out, the ruler does not act from anger; when rewards are given at court, the sovereign takes no personal part. Those punished do not resent the ruler, for their punishment is justly deserved; those rewarded do not claim virtue toward the sovereign, for it results from their own merit. The people understand that punishments and rewards arise from their own actions, so they strive to achieve accomplishments and cultivate their endeavors without seeking gifts from others. Thus, the court remains quiet with no signs of interference, fields are cultivated without weeds, and in such a state, the highest rulers are known but not actively involved. The way of kingship involves engaging in non-action, practicing instruction without words. It remains clear and still, unshaken by a single standard, follows the course of events and entrusts to subordinates, demanding results without exertion. Plans never fail; actions never overstep. Words are plain and unadorned; conduct lacks ostentation. Advancement or retreat corresponds with the time; movement or stillness follows principle. Beauty or ugliness does not provoke preference or aversion; rewards and punishments do not arise from joy or anger. Names are self-determined; categories follow their own nature. Affairs arise from spontaneity, none originating from oneself. To wish to restrict them is to separate from the Dao; to wish to embellish them is to harm them. The breath of Heaven becomes the soul; the breath of Earth becomes the spirit. When reversed into the profound and subtle, each resides in its proper dwelling. Guard them without loss, and they connect upward to Taiyi. The essence of Taiyi unites with Heaven. The Dao of Heaven is silent and formless, without shape or standard. Its greatness has no limit; its depth cannot be measured. It constantly transforms with people, beyond the grasp of wisdom. It turns endlessly without beginning or end, changing as if by divine will. Void and spontaneous, it follows naturally, always coming after rather than preceding. When governing, one must have an empty mind and a humble will, remaining clear and bright without obscurity. Therefore, all ministers converge and advance together; whether foolish or wise, virtuous or lacking in virtue, none fail to exert their abilities. The ruler gains the means to control his subjects, and the subjects gain the way to serve their sovereign—this is why a well-governed state becomes enlightened.

Laozi said: "He who knows yet loves to ask is a sage; he who is brave yet loves to inquire will prevail. He who employs the wisdom of many can bear any burden; he who uses the strength of many can conquer all. To rely on the strength of the people, even Wu Huo cannot be depended upon alone; to harness the momentum of the masses, no power in Heaven and Earth is beyond use." Without authority, one cannot establish a position; without following the principles of reason and measure, even a sage or holy person cannot achieve renown. Therefore, when the sage undertakes affairs, he never fails to use them according to their capacities. One with a certain form occupies one position; one with a particular ability serves in one task. When strength matches the responsibility, then what is carried out does not feel burdensome; when capability meets the task, then accomplishment is effortless. The sage uses all these together, hence no person is wasted and no material is discarded.

Laozi said: "What is meant by non-action (wuwei) is not that things do not come when drawn, or go away when pushed; it is not about ignoring pressure or remaining unmoved by influence, being rigid and stagnant without flow, or tightly held yet unyielding. Rather, it means that private desires do not interfere with public principles, and cravings do not attach to proper methods. One acts in accordance with principle, establishes achievements based on available resources, follows the natural momentum of events, and thus no artificial contrivance can find a place. When affairs are accomplished, one does not boast; when merit is achieved, one does not claim it. For instance, water uses boats, crossing rivers uses rafts, mud uses sledges, mountains use ladders, summer ditches winter embankments—elevated ground becomes hills, low areas become ponds. This is not something I have done." The sage does not blush at his own lowliness, but laments the failure of the Dao to be practiced; he does not grieve over a short life, but worries about the people's hardship. Therefore, he remains always empty and non-actional, embracing simplicity and revealing primal purity, without mixing with worldly things.

Laozi said: "In ancient times, the establishment of emperors and kings was not for indulging their desires. Those who ascended to power as sages did so not for personal ease or pleasure, but for the people under Heaven. When the strong oppressed the weak, the many bullied the few, the cunning deceived the foolish, and the brave attacked the timid—when wisdom and deceit were hoarded rather than shared, and wealth was accumulated without being distributed—the Son of Heaven was established to bring unity and order." The wisdom of one person cannot illuminate the entire realm, hence the Three Dukes and Nine Ministers were established to assist and support him. For distant states with unique customs that could not receive direct benefit, feudal lords were established to instruct and guide them. Therefore, Heaven and Earth, the Four Seasons, all respond accordingly; no official conceals matters, no state neglects benefits. Thus, the cold are clothed, the hungry fed, the elderly and weak cared for, the weary rested—nothing is left unprovided. Shennong was emaciated, Yao and Yu were thin, Shun had a dark complexion, Yu had calloused hands. Yi Yin carried a cauldron to seek Tang; Jiang Taigong wielded an axe before entering the Zhou dynasty. Bai Li Xi was sold into servitude; Guan Zhong was bound in chains. Confucius lived without his chimney ever blackening from smoke; Mozi never had time for warm rest, as he traveled constantly. These were not done out of greed for salary or desire for rank, but because they wished to initiate actions that would benefit all under Heaven and remove the harms suffered by ten thousand people. From the Son of Heaven down to commoners, those whose limbs are not laborious and whose minds are not burdened with thought, yet who seek sufficiency in affairs—such people have never been heard of.

Laozi said: "What is meant by the Son of Heaven is that one upholds the Dao of Heaven to establish order throughout the world." The way to establish order in the world is to hold fast to Unity as a foundation, return to the root through non-action, remain empty and still with nothingness. It is boundless and formless, extending far without end; it has no shape when seen, no sound when heard—this is called the fundamental principle of the Great Dao.

Laozi said: "The Dao has a round body and follows square principles, turns its back to Yin while embracing Yang, is soft on the left and firm on the right, walks in obscurity yet carries brightness. Its transformations are without fixed pattern; by grasping the source of Unity, it responds to all directions—this is called Divine Illumination." Heaven is round with no beginning or end, so it cannot be observed; Earth is square and boundless, so its gates cannot be glimpsed. The transformations of Heaven proceed without form, while the growth of Earth occurs beyond measure. All things have their limits, but only the Dao has no limit. The reason it is without limit is that it possesses no fixed form or condition. It turns endlessly with no shape, like the movement of sun and moon, the succession of spring and autumn, day and night—ending yet beginning anew, bright yet dark again. By shaping forms while remaining itself formless, achievements can be accomplished; by governing all things without being governed by them, it prevails without ever yielding. He who wins through temple strategy becomes an emperor; he whose power is divine and transformative becomes a king. He who wins by temple strategy follows the Dao of Heaven; he whose transformation is divine understands the Four Seasons. Correcting affairs within his borders, distant lands cherish virtue; securing victory before battle begins, feudal lords submit in reverence. Ancients who attained the Dao remained still and followed Heaven and Earth; when acting, they moved in accordance with the sun and moon. Their joys and anger harmonized with the Four Seasons. Their commands matched thunder and lightning; their voice and breath did not conflict with the Eight Winds; their bending and stretching did not deviate from the Five Measures. Following the desires of the people and harnessing their strength, one acts to remove cruelty and eliminate harm. Those who share interests will die for each other; those with shared feelings support one another's success; those walking the same path assist each other. When each follows his own course in action, all under Heaven become engaged in struggle. Therefore, those skilled in employing soldiers use them by allowing the soldiers to act of their own initiative; those unskilled force soldiers to serve only for themselves. When one allows soldiers to act on their own initiative, there is no one under Heaven who cannot be used effectively; when one forces them to serve solely for oneself, not even a single person can be relied upon.