This paper, through analyzing ＂Interpretation of LaoTze＂ written by Li Zhi, aims to understand how Li Zhi reinterpreted the 'Tao' and the connotation in the texts of ＂Lao Tze＂ and affirmed Lao Tze's 'being not incompatible with human relations' by negating Su Zhe's discussion of ＂complementation of Confucianism and Taoism＂ to complete his statecraft vision that harmony remains if no action is taken. Li zhi affirmed Confucianism, Buddhism, and Taoism all had their own noumenon and effects; therefore, the reason why realizing and mastering are feasible is not because of blindly matching but, on the focus of issues, askingthe counterpart to seek for communicative dialogues and opportunities. In Li Zhi's revealing to the 'Tao' and the connotation, it can be found his erudition pointed to a vision about how to achieve a better Society and contained the ethical concern with deep cultural connotations. Why Li Zhi repeatedly stressed that Lao Tze could reach the statecraft level was because Li Zhi thought Lao Tze's 'Tao' realm co-existed with others. What the subject reflected from the vacancy brought to the utmost degree was no longer selfhood but the living and growing attitude of being with everything in a 'Tao.' People could really see the unrestrained opening and demonstration of everything only under the profound discerning and understanding to directly achieve the law of the normal 'Tao.' Therefore, the sages could realize their own 'Tao,' embrace everything, and settle the world, making everything live, grow, and be raised by itself in the evolving of the 'Tao,' and consequently presenting the state of harmony and communion between people in the practice of statecraft