Introduction

This verse is a shining example that the dominance of wuwei (non-action, non-doing, (y)in-action) as the defining characteristic of Daoism is off. 

Here, we have a verse titled “Cultivate Integrity.” It specifically addresses the “becoming” part of the process and makes clear that both “being” and “becoming” are critical. 

In context, we see that first, we must learn how to “be.” That’s no small feat, but having done so, we can witness how things “become.” Understanding the process, we become responsible for cultivating the integrity of our Being (Dao) and Becoming (De).

Translation

Dao creates it; De nurtures it.
Matter forms it; Reason matures it.

This is why all that is,
  venerates Dao and cherishes De.

Dao is venerated,
  De is adored,
Because they are not controlled–
  eternally natural.

Dao creates it.

De nurtures it, raises it,
  ripens it, completes it,
  destroys it, fosters it,
Repeats it. 

Create and do not possess.
Use and do not exploit.
Lead and do not rule.

This is called “profound integrity.”

Commentary

Dao creates it; De nurtures it.
Matter forms it; reason matures it. 

There are a lot of “its” in here. What is “it.” “It” is anything that emerges from Dao's undifferentiated, pure potential. 

One way to think of Dao is as pure yin force, the absolute stillness of the mind before it splits into subject and object. De is the yang force responsible for movement and creating a “witness” and “something to be witnessed.” 

“Matter forming it” points us back to the non-dual frame. The idea of the observer effect is a pretty good analog for non-dualism. There is something “out there” to observe that generates a specific observation, but the observer’s presence impacts the thing that is observed just as much as the thing observed impacts the observer. 

In other words, things that “aren’t me” are going on, and those things follow specific rules. However, when “I” and “it” come into contact, a “we” space is created that isn’t purely “I” or “it.” 

“Reason matures it” points to how the human faculties of meaning-making take that I-it-we and turn it into something useful. Or, at least, a guess at what we might find helpful about the I-it-we situation based on a whole bunch of usually unconscious parameters that primarily have to do with staying alive.