The popular interpretation of the female metaphors in the Laozi claims that the thought of the Laozi must have a connection with archaic matriarchal elements and the worship of female reproductivity in primitive tribal societies. An alternative, unique theory argues that the female metaphors in the Laozi advocate an androgynous ideal rather than femininity. This article interprets Laozi's female metaphors as cultural symbolism, instead of as simply treating problems of the relationship between men and women. These cultural symbols, inspired by female features and implying the principle of femininity, are used to promote Daoist theories. As cultural symbols, the female metaphors suggest Daoist principles such as non-action and naturalness. To modern societies and the feminist movement, Laozi's principle of femininity may contribute inspiration and even challenges. For example, are soft, yielding, obedient, and tolerant qualities, traditionally attributed to women, necessarily negative, ought to be abandoned? Must modern women take male values and behavior as their own in order to realize emancipation? Is it possible to build a female ontological theory with the wisdom of Laozi's philosophy? As for hermeneutical theories and practices, this article argues that there should be a relative standard to evaluate any elucidation to prevent arbitrary and willful interpretations. The article explores the significance and possibilities of the coherence and combination of understanding, interpretation, and implication according to philosophical hermeneutics. It is also observed that there are two interpretive directions in the Chinese hermeneutical tradition: one is to reveal the meaning of texts, and the other to build a new system of thought inspired by the text. They are not always in harmony.