In recent years, the Daoist canon of Liezi, with its large number of fantastic stories, myths, and parables, has attracted more and more sinologists in the West. During this process of cultural exchange and dialogue, "translation" plays an important role which involves not merely different languages, but also philosophical and cross-cultural interpretations. This article discusses issues in translating the Liezi's concepts of cheng and xin, mainly seen from A. C. Graham's The Book of Lieh-tzu, which is so far the most complete and influential English translation of the Liezi. The article first compares the meanings of cheng and xin in Confucian and Daoist contexts. Secondly, it examines five parables and discourses of the cheng and xin concepts in the Liezi text and translation, so to explore the issues and research dimensions in cross-cultural studies.