In our research on the classical Chinese philosophy in which we have focused on its presentation of philosophical concepts, issues as well as propositions, we have discovered some clues to tackle these subjects more effectively. These are as follows: First, the formation of any philosophical idea often goes under the transformation from the general ideas into philosophical ideas or categories. Second, a term of single character comes earlier than a compound term. Third, an idea can be transformed into a proposition in its development. And four, a philosophical issue which has been implicit, manifests itself outwardly in its process of development. Bearing these in mind, this article attempts to reflect our interpretative methods by means of elucidating the process of the development of the philosophical category of li (principle). The article investigates the development of important interpretations from the pre-Qin period to song dynasty concerning the concept of li. This research has shown that the development of the term can be divided into the following five stages. First, the term li was adopted first as a philosophical idea in the philosophical system of Zhuang Zi (Zhuang Zhou). Second, it was the “Shuogua,” a commentary to The Book of Changes, that has proposed a theme of “exhausting the principle and exterting the human nature to the utmost.” (qiong li jin xing) This theme was instrumental for it could explain the content of Zhuang Zhou’s conception of li and xing (nature) under the argumentative framework of the subject-object relationship. Third, during the Wei-Jin period, the interpretative efforts by Guo Xiang and Wang Bi enriched the meaning of li. Wang Bi, on the one hand, focused every closely on the hand, focused very closely on the unity in the concept of li, while guo Xiang, on the other hand, on its various manifestations. Their interpretative efforts can seen as a source of the theme “one principle and may manifestations” (li yi fen shu) that is later proposed by Cheng brothers and Zhu Xi. Four, down to the Tang dynasty, Cheng Xuanying was the first commentator who invested the term with the significance as the highest ontological category. Before Cheng’s interpretation, only the term Dao contained such significance. Cheng’s efforts consequently upgraded the importance of the terms xing and li on the ontological level, by which Cheng tried to import the traditional argument about human nature and mind onto ontological dimension. Moreover, by adopting the them of “exhausting the principle and exerting the human nature to the utmost,” Cheng revealed the “realm of the unity of things and the self,” as well as of the “disappearance of the cognitive barrier which divides the self and this.” Indeed, all these interpretative effort by Cheng Xuanying has opened the door for the new philosophical attempt by Cheng brothers and Zhu Xi. And five, in the stage of the Learning of li“ by Cheng brothers and Zhu Xi, the idea of Li has come to the core in their philosophical system. Cheng brothers and Zhu Xi, the idea of li has come to the core in their philosophical system. Cheng brothers and Zhu Xi has accepted the views about the way and vital breath in the Lao-Zhuang Daosim, as well as importing the framework of the Way and Virtue also in the Lao-Zhuang Daoism in order to support their arguments. At the same time, they have also learned from Cheng Xuanying’s interpretation the reasoning method which had been attained by the theme “exhausting the principle and exerting the human nature to the utmost,” and the argument about the relationship between the principle and vital breathe in which vital breath comes earlier. In doing so, Cheng brothers and Zhu Xi adopted the idea of ontological li in order to validate the universal effect of the ethical theory of the classical Confusianism. On the basis, Cheng brothers and Zhu Xi presupposed that the inborn ethical good nature of men should be embodied and that the principle in inborn human nature should be also deeply recognized and manifested through the practice of morality. This presupposition enabled Cheng brothers and Zhu Xi to lay their theoretical basis on the true mind which has no substance but is illuminating, and to propose cognitive process of “mastery of the principle of things.” (g wu qiong li) In doing so, men can attain a deep comprehension on the ontological and inborn human principle which leads human beings to the attainment of moral behaviors. In our investigation into the important development of the interpretative implications on the tern of li from the pre-Qin period to Song dynasty, we have found the fact the main theoretical elements in its conceptual development have been involved in the argument on the Way, the relationship between the Way and things, and the theory on nature and mind, all of which came from Lao-Zhuang Daoist philosophy. Thus, in its Neo-Confucian appearance, “the Learning of li” by Cheng brothers and Zhu Xi has been constructed on the basis of the Daoist philosophy. Indeed, it is through our research on the development of the concept of li that again reveals the utmost importance of Daoism for the construction and development of t he Chinese philosophy.