Chapter 2 takes us into a world of relative contrasts: hot is hot in relation to cold rather than because there is some absolute heat or coldness. This idea introduces us to the behaviour of the Sage. The Sage is both a wise person and the ruler. Since at the time such a wise ruler was almost certainly male, the translation uses masculine pronouns for the Sage to contrast with the feminine pronouns used for the Way. The Sage is portrayed as someone who does not interfere in the natural course of events. He does not act, and as a result things are free to grow and act naturally. The paradox is that precisely by not engaging in deliberate activity, the Sage never loses control.
All under heaven know beauty as beauty, therefore there is ugliness;
All under heaven know good as good, therefore there is badness.
[Therefore],
Being and beingless* generate each other;
Difficult and easy form each other;
Long and short shape each other;
High and low complete each other;
Note and voice match each other;
Front and back follow each other.
(Such are all perennial.)
For this reason,
The Sage
abides in the practice of not acting,
undertakes teaching without words.
The myriad things act, yet he does not initiate them,*
They generate, yet he does not possess them,*
They act, yet he does not rely on them;
Tasks come to fruition, yet he does not dwell on them.*
Indeed, because he does not dwell on them, for this reason he does not lose them.