Abstract
In the history of Chinese philosophy, the School of "Qi" uses the gathering and scattering of "qi" to explain the coming into being and destruction of things, but is unable to explain the existence of different classes of things. On the basis of that school, the School of "Li" uses principle to explain how there can be classes, but is unable to explain individual objects. Daoism speaks of "Dao" , does away with classes—and on the basis of the Way, which produces "De" —explains individuality. Hence, in Chinese philosophical ontology there are two paths: one that uses virtue to explain individuality, and one that uses principle to explain what is not peculiar to the individual object. The present paper is a criticism and expansion of Feng Youlan's views on Daoism, as expressed in his "New School of Principle."