A much more important part in the history of Ancient Chinese thought and in actual events was played by the followers of the fa school, the Legists. They had several factions and were successfully received among the ruling class. Shen Pu-hai (400–337 B.C.), a minister at the court of Han kingdom, held the art of masterful government supreme. He maintained that the ruler of the state should pick his words with care, avoid haste in his actions and control his feelings. In ruling the state he must rely on his numerous and carefully selected assistants, none of whom he nonetheless should trust completely. The ruler is the hub and the assistants, the spokes. The ruler must not demonstrate his wisdom needlessly. Besides, he must rule by exercising the wu-wei ("non-doing") principle; i.e., he must see, hear and know everything, but organize his government so as to allow events take the desired course naturally, giving them only the occasional corrective nudge. For all that, daily strict supervision and intelligent selection of personnel are an absolute necessity. Many of Shen Pu-hai's suggestions were subsequently taken into account. Suffice it to remind the reader about the competition system used at culling qualified officials. However, it was the rigid Legism of Yang of Wei, or Shang Yang (390–338 B.C.), that played a far greater part in the history of Ancient China and Chinese civilization as a whole.
Shang Yang was a relative of the ruler of the Wei kingdom; he came to Ch'in at the request of Ch'in's ruler Hsiao Kung, who dreamed of reforming and radically strengthening his vast, though sparsely populated and semi-barbarian state. The essence of Shang Yang's reform — which was decently expressed in his treatise and even better demonstrated in the course of the radical changes he started (they were described in the historical work of Ssu-ma Ch'ien) — is that the people ought to be ruled with a rod of iron. Initially, the reform involved only double taxation exacted from families having more than one grown man in order to force such families to move and settle uncultivated lands. Then the Ch'in authorities published the law that invited immigrants from different, overpopulated states of Chungkuo (the "Middle Kingdoms") to Ch'in, providing fairly favorable condition for them. Generally speaking, laws — i.e., orders given by the authorities — were to become the main tool of ruling the people. Failure to obey laws (it was officials' duty to circulate their main idea among the people) entailed punishment. Shang Yang prescribed severe punishments even for trifling offences so as to discourage people from transgressing seriously, with a view to eliminating grave crimes in Ch'in. Conduct of the people must be strictly controlled and its efforts must be channeled into "productive occupations", i.e., farming and soldiering. The pao-chia system that incorporated small groups of five and ten families, each headed by a responsible appointee, involved the practice of mutual help — and also of mutual spying. Everyone was responsible for everyone else. Warriors were rewarded for military exploits. Reward found expression primarily in the system of socio-administrative ranks (there were normally 18 to 20 of them) created by Shang Yang and currently well-known all over the world. The lower ranks of that system were assigned among villagers. You were born, married, procreated a child, became the head of a large family, the patriarch of a group of kindred families, you were elected or appointed the head of a pao-chia or a community — all these phases of your life correspond to ranks 1–8 of the system. Higher ranks were assigned bureaucrats and soldiers for their service and special merits. Ranks higher than the 8th one normally entailed a position with a good wage, while the holders of the top ranks were often granted, as part of their office, the privilege to live at the expense of local population.