Introduction

This verse states something structurally true but often overlooked: resolving a conflict is not the same as upholding Integrity (德, dé). It exposes the limitations of compensatory gestures and clarifies what must be held if one is to actually Weave the Way.

At this point in the text, a certain level of familiarity and internal coherence is assumed. The structure of this text unfolds recursively, reflecting the reality it describes. Several cross-references are noted below, and revisiting them is essential to engaging this verse as part of the whole.

Translation

In resolving Great Resentments,
there will be leftover resentment.
How can that be good?

“The Wise” grasp the blame,
  and do not blame others.

Therefore,
  Having Integrity manages boundaries.
  Lacking Integrity manages their removal.

Heaven’s Way has no favorites,
  constantly offering what is appropriate.  

Commentary

In Resolving Great Resentments,
there will be leftover resentment.
How can that be good?

Conflict and resentment are natural parts of life. Typically, even when a conflict is resolved, some lingering bad feelings remain. This verse opens by pointing to this all-too-prevalent situation and then poses a question that reads two ways simultaneously. 

There’s a sardonic reading of “How can that be good?” There was conflict. That’s not great. There’s lingering resentment. That’s not great either. Once such a dynamic develops, it’s just not a good situation. In other words, do everything we can from the beginning to be in Integrity with Weaving the Way so that we don’t have ruptures to repair. Yet we know that part of the Dao is conflict so the text can’t be promoting unfounded idealism. This leads us to the following reading.

“How can that be good?” in a pragmatic way. There was conflict that needs to be repaired and everyone is going to have a healing process. How can that be done well? 

The following two phrases reveal how people navigate these rupture-repair situations. First, in what is common, admired, and can be skillful; however, isn’t truly beneficial. The next lines reveal what Weaving the Way offers as a superior solution.