Tao can be literally translated into English as the“path”, or the“way”. It is principally indefinable. It refers to a kind of power which envelops, surrounds and flows through all the living and non-living things. The Tao regulates natural processes and nourishes balance in the universe. It embodies the harmony of opposites (i.e. there would be no love without hate, no light without dark, no male without female.)

Classical Taoist philosophy, formulated by Laozi, the anonymous editor of the Daodejing (Classic of the Way and its Power), and Zhuangzi, was a reinterpretation and development of an ancient nameless tradition of nature worship and divination. Laozi and Zhuangzi, living at a time of social disorder and great religious skepticism (see article on Confucianism), developed the notion of the Dao (Tao -- way, or path) as the origin of all creation and the force -- unknowable in its essence but observable in its manifestations -- that lies behind the functioning and changes of the natural world. They saw in Dao and nature the basis of a spiritual approach to living. This, they believed, was the answer to the burning issue of the day: what is the basis of a stable, unified, and enduring social order? The order and harmony of nature, they said, was far more stable and enduring than either the power of the state or the civilized institutions constructed by human learning. Healthy human life could flourish only in accord with Dao -- nature, simplicity, and a free-and-easy approach to life. The early Taoists taught the art of living and surviving by conforming to the natural way of things; they called their approach to action wuwei (wu-wei -- lit. no-action), action modeled on nature. Their sages were wise, but not in the way the Confucian teacher was wise -- learned and a moral paragon. Zhuangzi's sages were often artisans -- butchers or woodcarvers. The lowly artisans understood the secret of art and the art of living. To be skillful and creative, they had to have inner spiritual concentration and put aside concern with externals, such as monetary rewards, fame, and praise. Art, like life, followed the creative path of nature, not the values of human society.