Laozi's Tao Te Ching is one of the most significant traditional philosophy of China, this essay examines the practical application of the origin theory of the universe and morality through cosmology. Besides, according to the essential sense of Taoism, this essay has a very apt metaphor of the political philosophy of "Control By Doing Nothing". And then it argues the core idea of "The Highest Level of Ethics is Like Water", profoundly analyzing the underlying political theories and philosophy in Tao Te Ching.