As a major figure in Chinese philosophy, Laozi's ( 老子 ) historical existence is strongly debated. Chinese tradition states that he lived in the 6th century BC. Many modern scholars state that he may have lived in approximately the 4th century BC, during the Hundred Schools of Thought ( 百家争鸣 ) and Warring States Periods ( 战国时期 ) . Laozi is credited with writing the influential Taoist work, the Daode Jing ( 道德经 ), and became a popular deity in the Taoist religion's pantheon.

Though little is known about Laozi's life, Laozi has become an important culture hero to subsequent generations of Chinese people. Tradition says he was born in Ku Prefecture ( 苦县 ) of the state of Chu ( 楚 ) in the later years of Spring and Autumn Period.

According to the tradition, and a biography included in Sima Qian ( 司马迁 ) 's work, Laozi was an older contemporary of Confucius ( 孔子 ) and worked as an archivist in the Imperial Library of the Zhou Dynasty court. Confucius intentionally or accidentally met him in Zhou, near the location of modern Luoyang ( 洛阳 ) , where Confucius was going to browse the library scrolls. According to these stories, Confucius, over the following months, discussed ritual and propriety, cornerstones of Confucianism, with Laozi. The latter strongly opposed what he felt to be hollow practices. Taoist legend claims that these discussions proved more educational for Confucius than the contents of the libraries.

Afterwards, Laozi resigned from his post, perhaps because the authority of Zhou's court was diminishing. Some accounts claim he travelled west on his water buffalo through the state of Qin and from there disappeared into the vast desert. These accounts have a guard at the western-most gate convincing Laozi to write down his wisdom before heading out into the desert. Until this time, Laozi had shared his philosophy in spoken words only, as was also the case with Socrates, Jesus, the Buddha and Confucius. Laozi's response to the soldier's request was the Daode Jing .

Laozi's famous work, Daode Jing , has been widely influential in China . The book is a mystical treatise covering many areas of philosophy, from individual spirituality to techniques for governing societies. He emphasized a specific "Dao", which often translates as "the Way," and widened its meaning to an unnameable inherent order or property of the universe: "The way Nature is." He highlighted the concept of wei-wu-wei, or "action through inaction." This does not mean that one should sit around and do nothing, but that one should avoid explicit intentions, strong will, and proactive action; one can reach real efficiency by following the way things spontaneously increase or decrease. Actions taken in accordance with Dao (Nature) are easier and more productive than actively attempting to counter it. Laozi believed that violence should be avoided when possible, and that military victory was an occasion to mourn the necessity of using force against another living thing, rather than an occasion for triumphant celebrations. Laozi also indicated that codified laws and rules result in society becoming more difficult to manage.

As with most other ancient Chinese thinkers, his way of explaining his ideas often uses paradox, analogy, appropriation of ancient sayings, repetition, symmetry, rhyme, and rhythm. The writings attributed to him are poetical, dense and often obscure. They served as a starting point for cosmological or introspective meditations. Many of the aesthetic theories of Chinese art are widely grounded in his ideas and those of his most famous follower : Zhuang Zi ( 庄子 ) .

Although Laozi does not have as deep an influence as Confucius does in China , he is still widely respected by the Chinese and his thoughts are studied in many places all around the world.