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Yin and Yang of Heaven and Earth generate the Five Phases (Wu Xing), each possessing its own distinct material substance (Zhi) and Qi. The material substances are fixed in the Earth, while the Qi circulates in Heaven. The Five Phases distribute in accordance with the sequence of the four seasons. Wood, Fire, Earth, Metal, and Water engage in mutual generation; Wood, Earth, Water, Fire, and Metal engage in mutual restriction. When one phase becomes hyperactive and causes harm, a corresponding regulatory mechanism restricts it, thereby maintaining the normal operation of generative and transformative functions. Through continuous generation and transformation, all things establish their lives.

[Note] Once Heaven and Earth are established, Yin and Yang exist within them. Yang is active and undergoes change, while Yin is static and combines, thereby generating the Five Phases. "Heaven generates One with Water, Earth completes it with Six; Earth generates Two with Fire, Heaven completes it with Seven; Heaven generates Three with Wood, Earth completes it with Eight; Earth generates Four with Metal, Heaven completes it with Nine; Heaven generates Five with Earth, Earth completes it with Ten." This indicates that each of the Five Phases has its unique material substance. The East generates Wood, whose Qi is Wind; the South generates Fire, whose Qi is Heat; the Center generates Earth, whose Qi is Dampness; the West generates Metal, whose Qi is Dryness; the North generates Water, whose Qi is Cold. This signifies that each of the Five Phases has its unique Qi. On Earth, there is Wood; in Heaven, there is Wind; on Earth, there is Fire; in Heaven, there is Heat; on Earth, there is Earth; in Heaven, there is Dampness; on Earth, there is Metal; in Heaven, there is Dryness; on Earth, there is Water; in Heaven, there is Cold. This demonstrates that the material substances of the Five Phases reside in the Earth, while their Qi circulates in Heaven. Wood is positioned in the East, with Wind Qi spreading in Spring; Fire is positioned in the South, with Heat Qi spreading in Summer; Earth is positioned in the Center and the four corner directions, with Dampness Qi spreading in Late Summer; Metal is positioned in the West, with Dryness Qi spreading in Autumn; Water is positioned in the North, with Cold Qi spreading in Winter. This describes how the five Qis distribute sequentially according to the order of the four seasons. As Zhou Dunyi stated: "Yang changes and Yin combines, giving rise to Water, Fire, Wood, Metal, and Earth. The five Qis distribute in sequence, and the four seasons proceed accordingly." Wood generates Fire, Fire generates Earth, Earth generates Metal, Metal generates Water, and Water generates Wood again. This is the mutual generation of the Five Phases, primarily responsible for nourishing all things. Wood restricts Earth, Earth restricts Water, Water restricts Fire, Fire restricts Metal, and Metal restricts Wood. This is the mutual restriction of the Five Phases, primarily responsible for controlling (or suppressing) all things. Mutual restriction leads to death, whereas regulation leads to life. If Wood becomes hyperactive, it harms Earth; if Earth becomes hyperactive, it harms Water; if Water becomes hyperactive, it harms Fire; if Fire becomes hyperactive, it harms Metal; if Metal becomes hyperactive, it harms Wood. This represents restricting the phase that one overcomes. However, the child phase of the phase I overcome is the phase that I cannot overcome. I fear that its child will come to rescue its mother and inflict harm, so I dare not act arbitrarily. Instead, I accept the restriction; once restricted, generation and transformation occur. Thus, each phase maintains its proper virtue, enabling the nourishment of all things without exception. For instance, if Wood Qi is excessively hyperactive, Earth suffers harm. This means I have restricted what I normally overcome. The child of Earth, which is Metal, will承接 (receive/inherit) this trend to restrict Wood. Consequently, I fear the phase I cannot overcome (Metal), naturally accepting its restriction, leading to regulation and subsequent generation/transformation. If Fire Qi is excessively hyperactive, Metal is restricted; the child of Metal, which is Water, will receive this trend to restrict Fire. If Earth Qi is excessively hyperactive, Water is restricted; the child of Water, which is Wood, will receive this trend to restrict Earth. If Metal Qi is excessively hyperactive, Wood is restricted; the child of Wood, which is Fire, will receive this trend to restrict Metal. If Water Qi is excessively hyperactive, Fire is restricted; the child of Fire, which is Earth, will receive this trend to restrict Water. The same applies to all Five Phases. This is why mutual generation does not lead to mutual destruction, and mutual restriction does not lead to mutual annihilation. This endless cycle of generation and transformation is the way in which all things establish their lives. The principles of mutual generation, restriction, and transformation of the Five Phases must be understood.