Taoist cosmology is based on the School of Yin Yang which was headed by Zou Yan (305 BCE – 240 BCE). The school’s tenets harmonized the concepts of the Wu Xing (Five Phases) and yin and yang. In this spirit, the universe is seen as being in a constant process of re-creating itself, as everything that exists is a mere aspect of qi, which, “condensed, becomes life; diluted, it is indefinite potential”. Qi is in a perpetual transformation between its condensed and diluted state.
These two different states of qi, on the other hand, are embodiments of the abstract entities of yin and yang, two complementary extremes that constantly play against and with each other and cannot exist without the other.
Human beings are seen as a microcosm of the universe, and for example comprise the Wu Xing in form of the zang-fu organs. As a consequence, it is believed that deeper understanding of the universe can be achieved by understanding oneself.