Well, while Lee's teaching may have been influenced by Taoism, he, of course, didn't endorse it. Quite the contrary what he said about it was usually either merely factual or derogatory. For example:
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Taoism is even more difficult to understand. Taoism speaks about the wind, saying that the wind is like a breath and comparing human life to the wind or a breath. Thus, Taoism does not talk about God either. Therefore, neither Confucianism nor Buddhism nor Taoism talks about God.
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Speaking for God by Witness Lee
Strange that he did not see the parallel to Christian doctrine of spirit.
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Although Antichrist will exalt himself above God, actually he will be used by God to destroy two religions—Judaism and Catholicism.
This is similar to the destruction of religion under communism in China. Although the communists oppose God, they do not realize that they have been used by God to demolish so many different religions, such as Buddhism and Taoism.
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Life-Study of Revelation by Witness Lee.
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What about Taoism and the teachings of Confucius? Developed by thoughtful Chinese, Taoism teaches vanity; it has nothing solid. Not only does Taoism have no God; it has nothing substantial. Hence, it is not a religion. Likewise, the teachings of Confucius should not be regarded as a religion, because Confucius did not teach people to worship God. Confucius did mention God a few times in his writings, calling Him the King of the heavens, or even the heavens. Even though Confucius mentioned God, his teachings are ethical, not religious. Therefore, Buddhism is nonsensical, Taoism is vain, and the teachings of Confucius are ethical.
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Basic Training by Witness Lee
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Taoism teaches how a person can reach a state of perfect peace and become immortal, but it is not related to worshipping God.
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The Exercise of the Spirit and the Building of God by Witness Lee. His statement here is true with regard to Religious Taoism but not philosophical Taoism
But, he does sound more positive about Taoism here:
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We told the people that life in the world usurps them. Some of the philosophers taught the same thing. For example, Taoism teaches simplicity and selflessness. We also told people that the enjoyment of this world is actually a form of death. Some philosophers taught this also.
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Life-Study of Exodus by Witness Lee.