The Wisdom of the Way
Around the same time that Confucius was teaching, other philosophers were developing the basic ideas of Daoism.  According to tradition, the father of Daoism was Laozi (low-zuh), a wise man who recorded his beliefs in the Dao De Jing, or "Way and Power Classic." However, historians aren't sure exactly when Laozi lived, and most believe that the classic Dao text was actually a collection of sayings by several philosophers.

Daoists rejected the Confucian emphasis on the family as a model for good government. They believed that the answers to society's problems could be found only in nature. To achieve true happiness, people must turn their backs on ambition, wealth, and power. They must live a simple life, in tune with the natural rhythms of day and night, spring and winter, life and death. Only in this manner could they truly grasp the Dao, or "Way," that was the mystic source of all life and order in the universe.

Over the centuries Daoism took many forms. some followers withdrew from society to live as hermits. Others used special diets, and yogalike exercises, in attempts to achieve eternal life. Writers and painters were especially attracted to Daoism. In the philosophy's rejection of social restrictions and its closeness to nature, they found inspiration for some of China's most creative poetry and art.
 -Schomp, Virginia. The Ancient Chinese. New York: Franklin Watts, 2004. 39-41. Print.