The traditional geyi or analogical interpretation practice purports to help Chinese understand and accept Hindu Buddhism through employing Taoist terms to interpret Buddhist terminology. Modern geyi, on the other hand, is the opposite: Western philosophical ideas are employed in the interpretation of ancient Chinese terms. Thus, we may name it fanxiang geyi or reverse analogical interpretation. However, this practice gives rise to difficulties that put even scholars in dilemmas because few Western philosophical concepts match the meaning of Chinese philosophical terms that refer to them. This paper attempts to examine the intricacy in this popular exercise through two examples. One is the long period argumentation on whether Laozi’s daodaoism is material or spiritual. The other is a deeper concern as to whether daodaoism is both metaphysical and of human value. The intricacy and arguments are generated by the divergence of Chinese and Western terminological systems, as well as of general cultural background. Therefore, we cannot find a simple correspondence between Western concepts and Chinese terms. Given this difficulty, we should explore the difference between the Western and Chinese terms and try to avoid using a ready Western term to define a Chinese expression. The traditional geyi or analogical interpretation practice purports to help Chinese understand and accept Hindu Buddhism through employing Taoist terms to interpret Buddhist terminology. Modern geyi, on the other hand, is the opposite: Western philosophical ideas are employed in the interpretation of Ancient Chinese terms. Thus, we may name it fanxiang geyi or reverse analogical interpretation. However, this practice gives rise to difficulties that put even scholars in dilemmas because few Western philosophical concepts match the meaning of Chinese philosophical terms that refer to them. This paper attempts to examine the intricacy in this popular exercise through two examples. One is the long period argumentation on whether Laozi’s daodaoism is material or spiritual. The other is a deeper concern as to whether daodaoism is both metaphysical and of human value. The intricacy and arguments are generated by the divergence of Chinese and Western terminological systems, as well as of gen Given this difficulty, we should explore the difference between the Western and Chinese terms and try to avoid using a ready Western term to define a Chinese expression.