Chinese theology, which comes in different interpretations according to the Chinese classics and Chinese folk religion, and specifically Confucian, Taoist, and other philosophical formulations, is fundamentally monistic, that is to say it sees the world and the gods of its phenomena as an organic whole, or cosmos, which continuously emerges from a simple principle. This is expressed by the concept that "all things have one and the same principle". This principle is commonly referred to as Tiān 天, a concept generally translated as "Heaven", referring to the northern culmen and starry vault of the skies and its natural laws which regulate earthly phenomena and generate beings as their progenitors. Ancestors are therefore regarded as the equivalent of Heaven within human society, and therefore as the means connecting back to Heaven which is the "utmost ancestral father". Chinese theology may be also called Tiānxué 天學, a term already in use in the 17th and 18th centuries.[In contrast to the God of Western religions who is above the space and time] the God of Fuxi, Xuanyuan, and Wang Yangming is under in our space and time. ... To Chinese thought, ancestor is creator.

Taoism or Daoism is a diverse tradition indigenous to China, variously characterized as both a philosophy and a religion. Taoism emphasizes living in harmony with the Tao—generally understood as being the impersonal, enigmatic process of transformation ultimately underlying reality. The concept originates in the Chinese word 道, which has numerous related meanings: possible English translations include 'way', 'road', and 'technique'. Taoist thought has informed the development of various practices within the Taoist tradition and beyond, including forms of meditation, astrology, qigong, feng shui, and internal alchemy. A common goal of Taoist practice is self-cultivation resulting in a deeper appreciation of the Tao, and thus a more harmonious existence. There are different formulations of Taoist ethics, but there is generally emphasis on virtues such as effortless action, naturalness or spontaneity, simplicity, and the three treasures of compassion, frugality, and humility. Many Taoist terms lack simple definitions and have been translated in several different ways.