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I personally have always had difficulty considering Confucianism to be a religion... it is more like a code of ethics that governs ones relationships with members of ones family, community and nation. Ultimately, Confucianism asserts a hierarchical worldview, in which those at the top and those at the bottom have certain rights and obligations to one another. You are incorrect in your assertion that Confucianism "lost out" to other religions; rather, it combined with them. Since both Buddhism and Taoism are non-theistic religions, that is, neither believe in a creator-god, they came into China with no set of dogmatic beliefs that clashed with the existing Confucian social structure. Thus, it was and remains fully possible for a person in China to practice Confucian ethics in their public life but Buddhist spirituality in their private one.
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