Abstract: The “vertical interpretation of vertical relationships” is an important conception in Mou Zongsan’s Confucianism. This conception is aimed at arguing that conscience is able to create beings. With its creation, everything in the universe has its moral significance and value and every case of moral achievement changes: the sufferings and sins followed by sacrifice to achieve morality are transformed into special happiness. From this we can solve the problem of perfect good (summum bonum) in Kant. However, due to some defects in his ontology, Mou Zongsan makes much confusion which is difficult to understand.

Key words: Mou Zongsan, vertical interpretation of vertical relationships, perfect good, ontology