China, a History

Stimulated by contact with India and the Middle East, the Empire saw a flowering of creativity in many fields. Buddhism, originating in India around the time of Confucius, continued to flourish during the Tang period and was adopted by the imperial family, becoming thoroughly sinicized and a permanent part of Chinese traditional culture. In an age before Neo-Confucianism and figures such as Zhu Xi, Buddhism had begun to flourish in China during the Southern and Northern Dynasties, and became the dominant ideology during the prosperous Tang. Buddhist monasteries played an integral role in Chinese society, offering lodging for travelers in remote areas, schools for children throughout the country, and a place for urban literati to stage social events and gatherings such as going-away parties. Buddhist monasteries were also engaged in the economy, since their land property and serfs gave them enough revenues to set up mills, oil presses, and other enterprises. Although the monasteries retained 'serfs', these monastery dependents could actually own property and employ others to help them in their work, including their own slaves.

The prominent status of Buddhism in Chinese culture began to decline as the dynasty and central government declined as well during the late 8th century to 9th century. Buddhist convents and temples that were exempt from state taxes beforehand were targeted by the state for taxation. In 845 Emperor Wuzong of Tang finally shut down 4,600 Buddhist monasteries along with 40,000 temples and shrines, forcing 260,000 Buddhist monks and nuns to return to secular life; this episode would later be dubbed one of the Four Buddhist Persecutions in China. Although this ban would be lifted just a few years after it was enacted, Buddhism never regained its once dominant status in Chinese culture. This situation also came about through new revival of interest in native Chinese philosophies, such as Confucianism and Daoism. The "brilliant polemicist and ardent xenophobe" Han Yu (786–824) was one of the first men of the Tang to denounce Buddhism. Although his contemporaries found him crude and obnoxious, he would foreshadow the later persecution of Buddhism in the Tang, as well as the revival of Confucian theory with the rise of Neo-Confucianism of the Song Dynasty. Nonetheless, Chán Buddhism gained popularity amongst the educated elite. There were also many famous Chan monks from the Tang era, such as Mazu Daoyi, Baizhang, and Huangbo Xiyun. The sect of Pure Land Buddhism initiated by the Chinese monk Huiyuan (334–416) was also just as popular as Chan Buddhism during the Tang.

Rivaling Buddhism was Daoism, a native Chinese philosophical and religious belief system that found its roots in the book of the Daodejing (attributed to Laozi in the 6th century BC) and the Zhuangzi. The ruling Li family of the Tang Dynasty actually claimed descent from the ancient Lao Zi. On numerous occasions where Tang princes would become crown prince or Tang princesses taking vows as Taoist priestesses, their lavish former mansions would be converted into Taoist abbeys and places of worship. Many Taoists were associated with alchemy in their pursuits to find an elixir of immortality and a means to create gold from concocted mixtures of many other elements. Although they never achieved their goals in either of these futile pursuits, they did contribute to the discovery of new metal alloys, porcelain products, and new dyes. The historian Joseph Needham labeled the work of the Taoist alchemists as "proto-science rather than pseudo-science."

The Tang Dynasty also officially recognized various foreign religions. The Assyrian Church of the East, otherwise known as the Nestorian Christian Church, was given recognition by the Tang court. In 781, the Nestorian Stele was created in order to honor the achievements of their community in China. A Christian monastery was established in Shaanxi province where the Daqin Pagoda still stands, and inside the pagoda there is Christian-themed artwork.