Of all the various sects and schools in the world of Buddhism, none at present are more widespread than Ch'an, Esoteric Buddhism and Pure Land Buddhism. Many intellectuals especially favor Ch'an, and all those who share at least a little in the root of wisdom enjoy practicing Ch'an meditation; as such, it has become very popular. As early as th Northern Sung dynasty (960-1127 AD), Chang Fang-p'ing said“Confucianism is bland; all that it cannot contain finds a home in Sakyamuni.” This statement quite startled the Prime Minister Wang An-shih, but in reality, a connection between Ch'an masters and the literati came about largely in response to this. Through the daily life of Chinese culture flows no small amount of sentiment and beauty full of the flavor of Ch'an, not only in poetry and painting, but even in menial tasks such as carrying firewood or moving water. This article will begin by introducing the origins of Ch'an in India, and the conditions which caused various changes and deuelopments as it was established in China. At the same time, I will explain certain relevant features relating to the practice of Ch'an. Then, I will present the opinion of the great Jepanese Ch'an master Suzuki Daisetsu that the“fasting of the heart”in In the World of Men and the“forgetful sitting”and“brightness of dawn”in The Greet and Venerable Teacher chapters of the Chuang-tzu are the earliest foundations of Chinese Ch'an Buddhism. Following him, I will offer my own views, using such examples as“Knowledge's interview with the Yellow Emperor”and “Gap-tooth's interview with Reed-coat” in Knowledge Wanders North, “empty quiet”and Nan-jung Chu's interview with Lao-tzu in Keng-sang Ch'u,“Chi Hsien tells the fortune of Hu Tzu” in Responding to Emperors and Kings, “Cood Ting butchers an ox” in What Matters in the Nurture of Life, “Wheelwright P'ien chisels a wheel” in The Way of Heaven, “On the True Person” in Under Heaven and other sections that are full of meaning for Ch'an as evidence. At the same time, I will also discuss certain material from Ch'an Kung-an (koan) which is identical or related to the Chuang-tzu. Through these comparisons, I will prove that although Ch'an was founded in India, its true development and flowering did not come about until after the Sixth Patriarch Hui-neng, in what is called the“Five Schools and Seven Sects” Ch'an entered into its golden age, when it quite naturally differed from the original “dhyana” and “yoga” of India in which it had its roots.