This article provides a short outline of the Chinese philosophy represented by Chuang Tzu and Lao Tzu. The philosophy is known as Taoism and derives its name from the word 'tao' (Way). It has been observed that: (1) Taoists believe that human beings can understand a way of the world, and should follow such knowledge if they and the world are to exist in harmony; (2) The Taoist Sage, by contrast to the Stoic Sage that is perfectly rational and convinced that only virtue is good and vice is bad, should be led by his spontaneous inclinations and live by 'wu-wei' (non-action).
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