Laozi said: The Dao can be weak, it can be strong; it can be soft, it can be firm; it can be yin, it can be yang; it can be obscure, it can be clear. It can encompass heaven and earth, and it can respond to all things without fixed form. Shallow knowledge is not deep knowledge; external knowledge is not internal knowledge; coarse knowledge is not refined knowledge. Knowing is actually not knowing, and not knowing is actually knowing. Who truly knows that knowing is non-knowing, and non-knowing is knowing! The Dao cannot be heard; what is heard is not the true Dao. The Dao cannot be seen; what is seen is not the true Dao. The DAO cannot be spoken of; what is spoken is not the true DAO. Who can know that which gives form to all forms yet itself has no form! Therefore, "When all under heaven knows what is good as good, this is already not good!" Those who truly know do not speak; those who speak do not truly know."

Wenzi asked: Can people make subtle remarks?

Laozi said: Why not? It is only by understanding words that one can do so! He who understands the meaning of words does not rely on spoken words. Those who strive to catch fish get wet; those who chase beasts run about—it is not because they enjoy doing so. Therefore, the highest words go beyond spoken words, and the greatest actions go beyond action. Those with shallow knowledge only contend over trivialities. As it says: "Words have a source, affairs have a master. I act as if ignorant, therefore people do not know me."

Wenzi asked: Is there also a method for governing the state?

Laozi said: Now, those who pull a cart shout "Ya ku" in the front and are echoed by those behind—it is a song to encourage effort. Even though it may be the music of Zheng, Wei, Hu, or Chu, none can compare with the meaning of this chant. Governing a state requires propriety, not elaborate rhetoric. "Where laws and decrees become increasingly prominent, thieves and bandits multiply."

Laozi said: The Dao has no fixed form but can be made into something definite. It is like a mountain forest that can become timber; yet timber is not as great as the mountain forest, the mountain forest is not as great as clouds and rain, clouds and rain are not as great as yin and yang, yin and yang are not as great as harmony, and harmony is not as great as Dao. The Dao is "the form without shape, the image of nothingness." Few can grasp its meaning. Between heaven and earth, all things may be molded and transformed by it.

Laozi said: A sage establishes teachings and administers governance, always examining the beginning and end, observing how benefits are bestowed. Therefore, when people know writing, virtue declines; when they know numbers, benevolence declines; when they know contracts and agreements, trust declines; and when they know devices and mechanisms, sincerity declines. The zither does not itself produce sound, yet its twenty-five strings each respond with their own tones. The axle does not move by itself, yet the thirty spokes rotate with their respective forces. Only when the strings are taut or loose can a melody be formed; only when the wheels work hard or rest can the cart travel far. It is the silent that gives rise to sound, and it is the motionless that enables movement. When rulers and subjects follow different paths, order easily turns to chaos. When one's position is high but their Dao is great, others will follow; when the affairs are great but the Dao is small, misfortune follows. Minor virtues harm righteousness, minor goodness harms the Dao, petty eloquence harms governance, and excessive meticulousness injures virtue. The greatest uprightness is not perilous, so the people are easily guided. The highest governance is relaxed and effortless, so subjects do not harm one another. Ultimate loyalty returns to simplicity, so the people have no deceit or concealment.

Laozi said: When laws of collective punishment are established, the common people resent them; when decrees to strip ranks are promulgated, meritorious officials rebel. Therefore, those who scrutinize records and documents do not understand the root causes of order and chaos; those accustomed to battlefield tactics do not comprehend the strategies of court warfare. The sage anticipates blessings within the innermost barriers and considers dangers beyond the unseen. The foolish are deceived by small gains and forget great harms; therefore, some matters benefit in minor aspects but harm in major ones, gain here yet lose there. Therefore, no greater benevolence exists than loving people, and no greater wisdom exists than knowing people. To love people means there will be no resentment or punishment; to know people means there will be no chaotic governance.

Laozi said: The great rivers and streams, when overflowing, do not continue for more than three days; a violent wind or heavy rain does not last even a moment at noon. Those who have no accumulated virtue yet feel no concern will not be able to cope with what is coming; worry leads to prosperity, while joy leads to downfall. Therefore, the capable turn weakness into strength and transform misfortune into fortune. The Dao is empty but never fills up.

Laozi said: Clarity, tranquility, peace, and harmony are the nature of human beings; standards, measures, and rules are the system for affairs. Knowing human nature allows one to cultivate oneself without contradiction; knowing the system of affairs ensures that one's actions remain orderly. Issue a single command, and all contention disperses; hold one instrument in control—this is called the mind; Perceive the root and know the end, grasp the One and respond to ten thousand things—this is called strategy. When at rest, one knows what to do; when moving, one knows where to go; in affairs, one knows how to proceed; in action, one knows when to stop—this is called the Dao. Making others regard one as noble and worthy of praise is the power of the mind; making others look down upon or slander oneself is a fault of the mind. Words spoken from the mouth cannot be stopped by others; actions taken nearby cannot be restrained at a distance. Affairs are hard to accomplish but easy to ruin; fame is difficult to establish yet easily destroyed. All people tend to underestimate small harms and neglect minor matters, thus leading to disaster. Disaster arises from one's own actions; blessings come about through one's own cultivation. Disaster and blessing share the same gate, benefit and harm are neighbors. Unless one attains supreme clarity, few can distinguish them. Therefore, wisdom and deliberation determine the gateway to misfortune or fortune; movement and stillness control the pivot of advantage and harm—these cannot be treated with anything but careful attention.

Laozi said: All people know the mechanisms of order and chaos, yet few understand the means to preserve life. Therefore, a sage considers the times when acting, and weighs circumstances before devising plans. The sage can be hidden or open, soft or firm, weak or strong. He acts in accordance with the times—still when stillness is needed and active when movement is required. He establishes merit by adapting to circumstances. Observing things as they pass, he knows their return; perceiving a single matter, he understands its transformation. When change occurs, he manifests an image of it; when movement takes place, he responds accordingly. Therefore, throughout his life, he acts without ever being trapped in difficulty. Therefore, some matters may be spoken of but not put into practice; others may be practiced but not discussed. Some are easy to begin yet hard to complete; others are difficult to accomplish yet easily ruined. What is said to be doable yet inexpressible refers to choosing and abandoning. What can be spoken of yet not put into practice refers to deceit and pretense. What is easy to start but hard to complete refers to affairs. What is difficult to accomplish yet easily ruined refers to reputation. These four matters are what the sage carefully considers, and what the wise alone perceive.

Laozi said: The Dao reveres small and subtle matters; in action, it never violates propriety. A hundred warnings are heeded with repeated caution—thus misfortune does not multiply. When calculating blessings, do not expect too much; when considering disaster, go beyond what is expected. On the same day of exposure, those who are protected suffer no harm. The foolish, if prepared, can achieve the same results as the wise. Accumulated love brings blessings; accumulated hatred brings disaster. All people know how to rescue from calamity, yet few know how to prevent calamity from arising in the first place. Preventing misfortune before it occurs is easy; dealing with it after it has happened is difficult. Nowadays, people do not strive to prevent misfortune from arising, but instead focus on remedying it after it occurs—even a divine sage cannot devise a plan for that. The sources of misfortune and disaster come from countless, unpredictable directions. The sage dwells in deep seclusion to avoid calamity and remains quiet and silent, waiting for the right moment. The petty person does not understand the gateways to blessings or disasters; they act recklessly and fall into punishment. Even if they make elaborate preparations, it is insufficient to preserve their lives. Therefore, the superior person first avoids misfortune before seeking benefit, and first distances himself from disgrace before pursuing fame. Thus, the sage always engages in matters beyond form, without fixating on what has already been accomplished; therefore, calamity has no way to arrive, and unworthy praise cannot defile him.

Laozi said: The way of ordinary people is this: the mind should be modest, yet one's aspirations should be great; wisdom should be comprehensive, yet conduct should be upright; ability should be abundant, yet affairs should be few. What is meant by "the mind should be modest" is to consider dangers before they arise, guard against disaster with caution over small matters, and dare not indulge one's desires. What is meant by "aspirations should be great" is to embrace all nations, unify diverse customs into one, and serve as the central hub amidst converging judgments of right and wrong. What is meant by "wisdom should be comprehensive" is that it has no beginning or end, flows in all directions, and like a deep spring never runs dry. What is meant by "conduct should be upright" is to stand firm and unbent, remain pure and unstained, not change one's principles even in adversity, and not indulge one's ambitions when successful. What is meant by "ability should be abundant" is to possess both literary and martial virtues, act in accordance with proper standards whether moving or still, and in all actions—whether initiating or ceasing—act appropriately in every situation. What is meant by "affairs should be few" is to grasp the essentials and align with the many, hold simplicity to govern the broad, and remain calm while controlling restlessness. Therefore, a modest mind restrains at the subtlest level; One with great aspirations holds all things in his heart; One with comprehensive wisdom knows everything; One with upright conduct has things he will not do; One with abundant ability can manage all matters; One who deals with few affairs holds to simplicity in what he upholds. Therefore, the sage, when it comes to virtue, does not consider any small good deed too insignificant to practice; and when it comes to faults, does not regard any minor mistake as too trivial to correct. To act without the need for shamans or diviners, yet have ghosts and spirits dare not precede one—this may be called supreme honor. And yet, with trembling caution, each day becomes more careful; thus, through non-action, unity is achieved. The wisdom of the foolish is already meager, and yet they engage in many affairs; therefore, their actions inevitably lead to failure. Therefore, to govern and educate through proper principles is easy and will surely succeed; to govern and educate through improper means is difficult and will inevitably fail. To abandon what is easy and certain success for what is difficult and bound to failure is the result of foolish confusion.

Laozi said: The arising of blessings is subtle and gradual; the birth of misfortune is chaotic and complex. The patterns of blessings and disasters are minute and imperceptible. The sage perceives their beginning and end, so they cannot be ignored without careful observation. The rewards and punishments of a wise ruler are not for his own benefit, but for the state. If something is favorable to himself yet beneficial to no one in the state, he does not bestow reward; if something is contrary to his personal interests yet advantageous to the state, he does not impose punishment. Therefore, one who upholds righteousness in accordance with appropriateness is called a gentleman; one who abandons the appropriateness of righteousness is called a petty person. The most enlightened understand and achieve without toil; the next level toils but remains unharmed; the lowest are harmed yet do not even accomplish through their toil. The ancients savored [the Dao] and did not abandon it, whereas people today abandon it without savoring it. Zhou made ivory chopsticks and Ji Zi wept; Lu buried effigy figures in tombs, and Confucius sighed. To see the beginning is to know the end.

Laozi said: Benevolence is what people admire; righteousness is what people hold in high esteem. To be admired and esteemed by others, yet still face death or the destruction of one's state, is because one does not adapt to the times. Therefore, he who knows righteousness but does not understand the circumstances of the age does not truly grasp the Dao. The Five Emperors valued virtue; the Three Kings employed righteousness; the Five Hegemons relied on strength. To take the way of emperors and apply it to an age of hegemons is not in accordance with the Dao. Therefore, goodness or failure depends on whether one aligns with or opposes convention; praise or blame, popular trends, and actions that conform or contradict the natural order all shift according to circumstances. Understanding what Heaven does, and understanding human conduct, one then has a basis for governing in this world. Knowing Heaven but not people, one cannot engage with the world; knowing people but not Heaven, one cannot wander freely with the Dao. Upholding rigid will and indulging emotions leads to being harmed by strength; using one's body to serve material things leads to being consumed by yin and yang. One who attains the Dao outwardly adapts but inwardly remains unchanged. Outward adaptation is for understanding people; inward constancy preserves one's integrity. Therefore, with a fixed moral character within, and flexibility without, one can bend or extend in accordance with circumstances, moving along with things, undertaking myriad actions without falling into peril. What is valued about the Dao is its ability to transform like a dragon. Clinging to one virtue and pushing forward along a single path, even if success is achieved, it remains unchanged; such people are bound by minor preferences and blocked from the great Dao. The Dao is solitary, quiet, and empty—without action upon things, nor exertion for oneself. Therefore, undertaking affairs in accordance with the Dao does not mean that the Dao itself acts; it is simply the manifestation of the Dao's influence. Heaven and Earth shelter and bear all things; sun and moon illuminate them; yin and yang nurture them; rain and dew moisten them; virtue and the Dao support them—all are united in one harmony. Therefore, he who can bear the great roundness treads upon the great square; he who mirrors the great clarity sees with great brightness; he who establishes peace dwells in the grand hall. He who can wander in obscurity shares light with sun and moon—formless yet giving birth to form. Thus, a true person entrusts his destiny to the spiritual platform (lingtai) and returns to dwell at the beginning of all things. He sees into darkness, listens to silence; within darkness alone does he perceive clarity, within stillness alone does illumination arise. To use it is actually not to use; only by not using can one truly employ it. To know it is actually not to know; only through not knowing can one genuinely come to know it. The Dao is the path of all things; virtue (de) is what supports life. Benevolence (ren) is the manifestation of accumulated grace; righteousness (yi) is that which aligns with one's heart and harmonizes with the needs of the people. The Dao fades while virtue arises; in the middle ages, people uphold virtue but do not cherish it; in later times, they are diligent and fearful of losing benevolence. Therefore, a gentleman cannot live without righteousness; to lose righteousness is to lose the very basis of life. A petty person cannot live without profit; to lose profit is to lose their means of survival. Thus, the gentleman fears losing righteousness, while the petty person fears losing profit. To observe what one fears reveals whether misfortune or blessings await them—these outcomes differ greatly.

Laozi said: Some matters seem to bring benefit, yet they are sufficient to harm people; sometimes what appears harmful is actually enough to bring benefit. When someone has a fever and one forces them to eat, or when they are thirsty and one gives them cold drinks—these are what ordinary people consider care, yet these are precisely the causes of illness according to a skilled physician. What pleases the eyes and delights the heart is what the foolish consider beneficial; yet it is precisely what those who possess the Dao seek to avoid. The sage first opposes and later harmonizes; the common people first harmonize and later oppose. Therefore, the gateways of blessings and misfortunes, the reversals of benefit and harm—these cannot go unexamined.

Laozi said: One who has merit but distances himself from benevolence and righteousness will inevitably be suspected; one who commits a crime yet possesses benevolence and righteousness is certainly trusted. Therefore, benevolence and righteousness are the constant principles of affairs and the most honored titles under heaven. Even if one's plans are well-conceived, strategies appropriate, and loyal efforts aimed at preserving the state, if these actions depart from benevolence and righteousness, their success will inevitably be hindered. Though one's words may not align with the plan, and though their strategies offer no benefit to the state, if their heart is devoted to the ruler and in harmony with benevolence and righteousness, they themselves will surely be preserved. Therefore it is said: a hundred plans that are constantly inappropriate are less valuable than abandoning haste and carefully examining benevolence and righteousness.

Laozi said: Education originates from the gentleman, and the petty person benefits from its influence. Profit arises from the petty person, yet it is the gentleman who reaps its rewards. If gentlemen and petty people each find their proper place, then mutual contributions will flow smoothly, sustenance will be shared easily, and the Dao will be realized. When people have excessive desires, righteousness is harmed; when they are burdened with too many worries, wisdom is damaged. Therefore, in a well-governed state, music exists to preserve harmony, but in a tyrannical state, music becomes the cause of its downfall. Water flows downward and becomes vast; a ruler governs by yielding to his ministers and thus attains wisdom. When the ruler does not compete with his ministers, the way of governance is unimpeded. Therefore, the ruler is like the root, and the minister is like the branch or leaf. There has never been a case where the root is not beautiful yet the branches and leaves flourish.

Laozi said: The love of a kind father for his child does not seek repayment—it cannot be explained or understood from within the heart. The sage ruler's nurturing of the people is not for their service, but a matter of nature and necessity. When people rely on strength and depend on past achievements, they will inevitably face hardship; when there are expectations or demands, benevolence no longer connects them. Therefore, by employing what the people love, one gains their strength; by promoting what the people favor, one wins their hearts. Thus, to see the beginning is to know its end.

Laozi said: People are bound by righteousness and love; factions grow strong through unity. Therefore, where virtue is widely bestowed, authority extends far; where righteousness is shallowly applied, military control remains limited.

Laozi said: To gain something through injustice and yet not distribute it leads to misfortune befalling oneself. One cannot benefit others, nor can one provide for oneself—this is the mark of a foolish person, no different from an owl who loves its child but brings only harm. Therefore, "It is better never to grasp and prepare than to do so after the fact; sharpening something too much cannot be preserved long." Virtue contains the Dao, and the Dao contains virtue; their transformation is boundless. Within yang there is yin, within yin there is yang—this applies to all affairs of the world, and cannot be fully explained. When blessings arrive, auspicious signs are present; when misfortune comes, ominous signs appear first. To see auspicious omens yet not act virtuously means blessings will not come; to see ill omens and yet perform good deeds ensures that disaster does not arrive. Benefit and harm share the same gate; calamity and fortune dwell as neighbors. Unless one is a sage or holy person, few can discern this clearly. Therefore it is said: "Misfortune leans upon blessings, and blessings conceal misfortune—how many know their ultimate limits?" When a person is about to fall ill, they first begin to crave the taste of fish and meat; when a state is on the verge of collapse, it will first resent the words of loyal ministers. Therefore, for one whose illness has reached its final stage, no skilled physician can save them; for a nation already doomed to ruin, no loyal advisor's plans can be heeded. Cultivate oneself first, and then one can govern the people; manage a household well, and only after order is achieved there can one serve as an official. Therefore it is said: "Cultivate yourself, and your virtue will be genuine; cultivate your family, and your virtue will overflow; cultivate the state, and your virtue will abound." The people rely on clothing and food for their livelihood. When affairs are sufficient to provide clothing and food, there is achievement; when they are insufficient in this regard, there is no achievement. Without achievement or virtue, a ruler cannot endure long. Therefore, if one follows the time yet fails to achieve success, do not change the laws; if one conforms to the season yet fails, do not alter the principles. When the time returns and rises again, this is called the order of the Dao. Emperors enrich their people; dominant kings enrich their territories; endangered states enrich their officials. In a well-governed state, resources may seem insufficient, while in a collapsing state, granaries are empty. Therefore it is said: "When the ruler has no burdensome affairs, the people become naturally wealthy; when the ruler acts without interference, the people transform themselves spontaneously." Mobilizing an army of one hundred thousand costs a thousand gold pieces per day. "After the general returns, there will surely be a year of misfortune," hence it is said: "Weapons are inauspicious instruments and not treasures for gentlemen." "Reconciling great resentment will inevitably leave some lingering resentment"—how then can one act unjustly? In ancient times, those close were not won over by words, and distant ones were not attracted through speech; instead, one made the nearby people happy and thus drew the distant ones to come. Sharing desires with the people brings harmony; sharing vigilance with them ensures stability; sharing thoughts with them leads to understanding. He who gains the strength of the people becomes wealthy, and he who earns their praise attains prominence. Actions may invite enemies, and words may bring disaster. Therefore, do not speak before others, nor act after they have done so. Whispered words in the ear may travel a thousand miles; speech is a source of disaster, and the tongue is like a trigger. Once spoken improperly, no four horses can retrieve what has been said. In the past, Zhonghuangzi said: Heaven has five directions; Earth has five elements; sounds have five tones; things have five flavors; colors have five patterns; and people have five positions. Therefore, between Heaven and Earth there are twenty-five types of people. The top five are: Divine Person (Shenren), True Person (Zhenren), Daoist Person (Dao Ren), Perfected Person (Zhiren), and Sage (Shengren). The next five are: Virtuous Person (Deren), Worthy Person (Xieren), Wise Person (Zhiren), Good Person (Shanren), and Persuasive Person (Bianren). The middle five are: Public Official (Gongren), Loyal Person (Zhongren), Trustworthy Person (Xinren), Righteous Person (Yiren), and Rites-Observant Person (Liren). The next five are: Scholar (Shiren), Artisan (Gongren), Game Warden (Yuren), Farmer (Nongren), and Merchant (Shangren). The lowest five are: Common People (Zhongren), Slave (Nuren), Foolish Person (Yuren), Flesh-Bodied Person (Rouren), and Petty Person (Xiaoren). The top five compared to the bottom five are as humans compared to oxen and horses. The sage uses his eyes to see, his ears to listen, his mouth to speak, and his feet to walk. The True Person sees without looking and is thus enlightened; hears without listening and is thus perceptive; follows without walking, and speaks not yet remains impartial. Therefore, the actions by which the sage moves the world have never been surpassed by the True Person; and the efforts of the worthy to correct worldly customs are never observed by the sage. What is called the Dao has neither before nor after, neither left nor right; all things are mysteriously united in it, with no distinctions of right or wrong.