Abstract This paper philosophically criticizes Zhu Xi’s understanding of the philosophy of Laozi. In moral aspect, committing the fallacy of appealing to character or ad hominem, Zhu Xi accused Laozi of ethical nihilism and ignored the dialectically paradoxical way of Laozi’s own thinking and writing. So Zhu Xi’s moral critique of Laozi lacked theoretical significance. In ontology, owing to his misconception of “Being” and “Non-being” in the philosophy of Laozi, Zhu Xi objected to Laozi’ s thesis that Being comes from Non-being. However, he can fully appreciate the 6th chapter of the book Laozi instead. According to Wing-tsit Chan’s interpretation, Zhu Xi’s appreciation had its origin that Cheng Yi did not ever account for the creativity of Li (or Principle) so that Zhu Xi appropriated this chapter to amend the philosophical deficiency. Furthermore, Chan claims that Neo-Confucianism unexpectedly acquired the idea of creativity from Laozi’s philosophy. By contrast, this paper argues for the opposite side of Chan’s interpretation, and concludes that Chan cannot justify his judgment.