Provides a history of this Chinese religion, discussing scriptures, rituals, worldview, festivals and holidays, and its status in the world today. A Chinese mystical philosophy, Taoism was founded by Lao-tzu in the sixth century B.C. Taoism is a way of life in that the "Tao" is a force that flows through all sentient beings and when the Tao is in balance, perfect happiness is possible.