Dao is often described as "the path" or "the way of life." Just as its counterpart in ancient India, Ayurveda, The laws of the Dao advocate moderation, living in harmony with nature and striving for balance. Ancient Chinese believed that moderation in all areas of life is essential to a long and fruitful life. We are "fueled" by three treasures: Qi or Chi (pronounced chee), Shen, and Jing. Chi is energy or vital substance, Shen is the spirit, and Jing is our essence. Qi is both the life force (or vital substance) and the organizing principle flowing through all things and establishing their interconnectedness.

Chinese believe that every living thing (both human and non-human) has qi. In the body, qi is found in the heart and lungs in circulating blood and oxygen. Shen is the treasure that gives brightness to life and is responsible for consciousness and mental abilities. Sometimes it is compared to soul. Within the individual shen is manifested in personality, thought, sensory perception, and the awareness of self. Jing is responsible for growth, development and reproduction. Jing represents a person's potential for development. (comparable to western concept of genetical inheritance). Chinese believed that everyone is born with a finite amount of Jing. As we go through life, we lose or consume our Jing little by little. Once we lose Jing, it cannot be replaced. It is gone for ever. We lose Jing if we live a wrong or careless living. But Jing can be preserved if we live in moderation. Acupuncture can reduce the loss of Jing.

According to the philosophy of Dao, the role of the acupuncturist is to restore your health and enable you to live a little closer to the Dao, thus preserving your Jing and living to a ripe old age. A number of factors can contribute to the depletion of Jing. Living a life of excess, drinking too much, excessive emotional reactions, working too hard, inappropriate sexual behavior, etc. all were believed to result in the depletion of Jing. Balance in all things was considered the key to good health and long life.

In order to increase their understanding of the Dao, the Chinese developed two concepts that together form the basis of Chinese thought: yin and yang and the more detailed system of the five elements.