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To further elucidate on Katmandu's answer, no one really knows if Lao Tze (Laozi, Lao Tzu) ever really existed. Taoism is based on an amalgamation of ancient Chinese folk religions. Lao Tze was apparently the author of the book "Tao Te Ching" or "Daodejing", which translates to "Classic Way of Virtue". However scholars cannot agree whether Lao Tze wrote the book in the 6Th century BCE, the 3rd century BCE, or if he existed at all. One theory is that several authors compiled the book and attributed it to Lao Tze. Some legends have it that Lao Tze was a teacher to both Confuscious in China and Buddha in India. At any rate, Taoism was originally a philosophy until the second century CE when the Tang Dynasty accorded Lao Tze Divine status and made Taoism the official State religion. Of course later Dynasties chose other religions to be the Official Religion, and the number of adherents to Taoism dwindled.
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