Since ancient times, there has been a belief in China that all things in the world and their interaction consist of two opposite aspects - Yin and Yang. According to the school of Yin-Yang, it is the interaction between Yin and Yang that gives birth to everything in the universe. Later on, the content on the five elements were added to the theories of the school of Yin-Yang; thus the name "yinyang wuxing" (Theory of Yin-Yang and the Five Elements). The five elements refer to the five forms of the matter in nature, namely, water, fire, metal, wood and earth.

There are many different versions about the origin of the Theory of Yin-Yang and the Five Elements. It is believed by some that the five elements are originally intended to reflect the movement of Yin-Yang qi in the world, namely the changes of the five seasons. Compared with many other schools of thoughts rising at the same time in the Warring States Period, the Theory of Yin-Yang and the Five Elements got developed by integrating with various schools although it was not developed into an independent school of thought.

Originally an ancient concept of China, the concept of "five elements" has been attached with mysterious meanings by the school of Yin-Yang. They believe that the five matters give birth to and oppose one another in an endless circle, thus resulting in numerous changes in the boundless universe. In addition, the five elements have moral connotations: winter is represented by the north, connoting water morality; summer the south, fire morality; spring the east, wood morality; autumn the west, metal morality; the turn from spring to summer the center, earth morality.