Legalism (Chinese philosophy)
Daodejing 17

With some of Han Fei's own ideas, the Han Feizi's eclectic Way of the Ruler (Chapter 5) parallels Laozi with Shen Buhai, highlighting Shen Buhai's administrative ideas with advice to the ruler to reduce his expressions, desires and traditional wisdom. With hints of naturalism, but leaving out metaphysics, Han Fei often references the Dao in an attempt to demonstrate how the Laozi can make a better ruler, with its particular chapter as example. Sima Qian does not include the chapter in his short list, so that it can be questioned if he read it; but it would seem the most likely chapter he would have read when he placed the figures, sans Shang Yang, as "Huang-Lao", discussing Shen Buhai and Han Fei alongside Laozi and Zhuangzi. Chapter 5's first paragraph says:

Dao is the beginning of the myriad things, the standard of right and wrong. That being so, the intelligent ruler, by holding to the beginning, knows the source of everything, and, by keeping to the standard, knows the origin of good and evil. Therefore, by virtue of resting empty and reposed, he waits for the course of nature to enforce itself so that all names will be defined of themselves and all affairs will be settled of themselves. Empty, he knows the essence of fullness: reposed, he becomes the corrector of motion. Who utters a word creates himself a name; who has an affair creates himself a form. Compare forms and names and see if they are identical. Then the ruler will find nothing to worry about as everything is reduced to its reality. W. K. Liao. ch.5

K.C. Hsiao 's early literature contrasts Han Fei and Daoism. One, the ruler of the Daodejing 's paragraph 17 was that of a primeval state, not one expected to potentially lead an empire. A Daoist does not generally place heavy emphasis on agriculture, rewards and punishments as with Shang Yang. Han Fei says "when terms are rectified and laws complete, the sage ruler will have no matters to concern him", aiming for an "enlightened ruler presiding above in non-action". But his non-action is secrecy in imposing punishments and concealing knowledge. Hsiao contrasts this with the ruler's mind forming "a harmonious whole with that of all his people" in the Daodejing.

But Creel takes particular note of section 17 of the Daodejing (Laozi) as interpreted by J. J. L. Duyvendak, "arousing wide interest" but "quite old in Chinese literature" as that of a form of Daoism "leaning heavily toward Legalism". Creel takes the Wenzi as example, including a passage drawing from the Daodejing, Han Feizi and Huainanzi. Section 17's 'enigmatic' passage does not directly mention rulers, but would seem to discuss the ruler as one who "does everything without acting". Duvyendak notes the discussion of good faith as recurring in section in 23, but took it as "not belonging" and did not include it there. In the Guodian and Mawangdui versions, section 17 is combined with its similarly political section 18. The typical reader would in any case find Duyvendak more readable than the Mawangdui. Translator Harris take's Shen Dao's "Understanding Loyalty" as "including a concern that a focus on loyalty arises only when things have already begun to go wrong."

In highest (antiquity) one did not even know there were rulers (or merely knew there were rulers)... If good faith (of the prince towards the people) is inadequate, good faith (of the people towards the ruler) will be wanting. Thoughtful were (the sage rulers), valuing their words! When the work was done and things ran smoothly, the people all said: "We have done it ourselves!".... When the great Way declines, there is "humanity and justice". When state and dynasty are plunged in disorder, there are "loyal ministers".(Duyvendak 17-18)
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