In this essay, it is argued that the basic categories in Chinese philosophy, such as “the five elements,” “the yin and the yang,” “Chi (air),” and “Tao,” are fundamentally different from the concept of “substance” of Western philosophy. The Confucian conception of “the virtue of the dynamism of life” and “the ultimate principles of yin and yang;” the Taoist principle that “I co-exist with the world and everything in the world and I are one,” and the Buddhist idea of “the three ways to perfection” (emptiness, falsity and neutrality), and “boundlessness of reasons and things,” all stand without appeal to a concept of substance. In Chinese philosophy, it is firmly claimed that the most basic mode of existence is the interdependence between human beings and the world, essence and phenomena, subject and object, and their eternal flowing into each other. Chinese philosophy is typically different from western ontology and methodology of substance in the sense that the physical and the metaphysical penetrate each other; the ideal state and practical existence are unified, and the sublime of human existence and the ultimate value of life are lived experience in Chinese philosophy.