This article discusses the principles of Taoism that the scholar of China, Mr. Mou Zong-san (1909-1995), had defined. Firstly, I introduce Mr. Mou's views on Taoism. Secondly, I address my argument against his definition. I consider that the nature of Tao possesses the duality of “existence” and “non-existence” as implied in the original text of 《Lao-zi》. Besides, the “nature” denotes “inherency” in terms of its factuality and purports “spontaneousness” in terms of its functionality. Anyone who intends to interpret the meaning of nature based on the “functionality” only catch its partial essence. The Taoists consider “Tao Sheng” (The path of truth) as a spontaneous way that all things are born. Accordingly, all things will develop by themselves based on their inherencies. The connotation of “Tao Sheng” that Taoism asserts (which is subject to reality) is different from the Confucian definition. However, the both are compatible in the way of fulfillment. The Confucians realize the way of truth by means of humaneness and righteousness. On the other hand, the Taoists take existence as primary. The latter embraces any possibility in a transcendental spirit. Therefore, it is able to hold the diversity of different cultures and senses the unlimited variation of existence.