Short answer
No. The Tao that the Tao Te Ching describes is not God. Tao (Dao) means the Way. The book says it has no name: "I do not know its name" (25). It says the Tao produced all things. Yet it "makes no claim to the possession of them" and "exercises no control over them" (51). In the book the Tao never speaks or gives a command, and no one is told to call on it. Islam agrees that no one can grasp God (6:103). But the Qur'an tells of a Creator who is the Living (2:255), and who hears and sees (42:11). He speaks to His messengers (42:51). He listens to the one who calls on Him (2:186). And He has told us His names, so that we can call on Him by them (7:180).
Full explanation
What the Tao Te Ching says the Tao is
The Tao Te Ching (Daodejing) is a short book of 81 chapters. Tradition names Laozi (Lao-tze) as its writer. Tao (Dao) means the Way, or the course things take. The book opens by saying that the Tao that can be trodden, or spoken of, is not the lasting Tao. The name that can be named is not the lasting name. Later the writer says he does not know its name, and only gives it the name Tao. Wang Bi (226-249), the best-known early commentator, explains why: a name fixes a form, and the Tao has no form. The book says the Tao produced all things, and that all things are produced by it. This page quotes James Legge's English translation of 1891.
“The Tao that can be trodden is not the enduring and unchanging Tao. The name that can be named is not the enduring and unchanging name.”
“I do not know its name, and I give it the designation of the Tao (the Way or Course). Making an effort (further) to give it a name I call it The Great.”
“The Tao produced One; One produced Two; Two produced Three; Three produced All things.”
“All things are produced by the Tao, and nourished by its outflowing operation.”
Wang Bi, the best-known early commentator on the Tao Te Ching, reads these chapters as follows. On chapter 4, Di is the Lord of Heaven; not even heaven and earth reach the Tao, so it seems to come before Di. On chapter 5, heaven and earth let things follow their own nature: they neither act nor make, and things order themselves, so they are "not benevolent". On chapter 25, a name fixes a form, and the Tao has no form, so its name is not known. On chapter 62, the "admirable words" are words in praise of the Tao, worth more than any treasure. Those who are not good should keep to the Tao, so that they are not cast off. Whoever seeks by it obtains, and whoever seeks escape by it escapes. On chapter 73, going with the way of Heaven brings good fortune and going against it brings misfortune; so it does not speak, yet answers well. Things come to it of themselves because it keeps low. Its plans are the signs it shows of good and ill fortune, before things happen.
It produces, but does not claim, control or speak
The book says the Tao produces all things, but makes no claim to own them. It brings them to maturity, and exercises no control over them. Chapter 73 speaks of the way of Heaven, and the book says Heaven takes its law from the Tao (25). The way of Heaven does not strive, yet it overcomes. It does not speak, "and yet it is skilful in obtaining a reply". It does not call, "and yet men come to it of themselves". Its plans are "skilful and effective", and its net lets nothing escape. Wang Bi explains three of these lines. The reply is good fortune for those who go with it, and ill fortune for those who go against it. Things come to it because it keeps low. Its plans are the signs it shows of good and ill fortune. Chapter 5 says that heaven and earth do not act from any wish to be benevolent. That chapter speaks of heaven and earth, not of the Tao. Wang Bi explains that heaven and earth let things follow their own nature. In the whole book, the Tao never speaks to anyone, gives a command, or is called on in prayer.
“It produces them and makes no claim to the possession of them; it carries them through their processes and does not vaunt its ability in doing so; it brings them to maturity and exercises no control over them;--this is called its mysterious operation.”
“It is the way of Heaven not to strive, and yet it skilfully overcomes; not to speak, and yet it is skilful in obtaining a reply; does not call, and yet men come to it of themselves. Its demonstrations are quiet, and yet its plans are skilful and effective. The meshes of the net of Heaven are large; far apart, but letting nothing escape.”
“Man takes his law from the Earth; the Earth takes its law from Heaven; Heaven takes its law from the Tao.”
“Heaven and earth do not act from (the impulse of) any wish to be benevolent; they deal with all things as the dogs of grass are dealt with. The sages do not act from (any wish to be) benevolent; they deal with the people as the dogs of grass are dealt with.”
Wang Bi, the best-known early commentator on the Tao Te Ching, reads these chapters as follows. On chapter 4, Di is the Lord of Heaven; not even heaven and earth reach the Tao, so it seems to come before Di. On chapter 5, heaven and earth let things follow their own nature: they neither act nor make, and things order themselves, so they are "not benevolent". On chapter 25, a name fixes a form, and the Tao has no form, so its name is not known. On chapter 62, the "admirable words" are words in praise of the Tao, worth more than any treasure. Those who are not good should keep to the Tao, so that they are not cast off. Whoever seeks by it obtains, and whoever seeks escape by it escapes. On chapter 73, going with the way of Heaven brings good fortune and going against it brings misfortune; so it does not speak, yet answers well. Things come to it of themselves because it keeps low. Its plans are the signs it shows of good and ill fortune, before things happen.
Legge's "God" in chapter 4
In chapter 4 the writer says of the Tao, "I do not know whose son it is". Then he says it seems to have been before Di. Di (Ti) is a title of Shangdi, the Lord on high whom the ancient Chinese honoured. Legge, a Christian missionary, wrote "God" for it. Wang Bi explains Di here as the Lord of Heaven. So this chapter does not call the Tao God (﷾). It says the Tao seems to come before the being it calls Di. God (﷾), as the Qur'an tells of Him, is "the First and the Last": nothing came before Him.
“I do not know whose son it is. It might appear to have been before God.”
Wang Bi, the best-known early commentator on the Tao Te Ching, reads these chapters as follows. On chapter 4, Di is the Lord of Heaven; not even heaven and earth reach the Tao, so it seems to come before Di. On chapter 5, heaven and earth let things follow their own nature: they neither act nor make, and things order themselves, so they are "not benevolent". On chapter 25, a name fixes a form, and the Tao has no form, so its name is not known. On chapter 62, the "admirable words" are words in praise of the Tao, worth more than any treasure. Those who are not good should keep to the Tao, so that they are not cast off. Whoever seeks by it obtains, and whoever seeks escape by it escapes. On chapter 73, going with the way of Heaven brings good fortune and going against it brings misfortune; so it does not speak, yet answers well. Things come to it of themselves because it keeps low. Its plans are the signs it shows of good and ill fortune, before things happen.
Legge, a Protestant missionary, argues in this book that Shangdi is the right Chinese word for the God of the Bible. This was one side of the missionaries' dispute over the Chinese name for God. In his translations of the Chinese classics he renders Di and Shangdi as "God".
“He is the First and the Last, the Evident and the Immanent: and He has full knowledge of all things.”
God (﷾) hears, speaks and answers
Islam agrees that no vision can grasp God (﷾), and that nothing is like Him. But the same verse that says nothing is like Him also says He hears and sees. He is the Living, who never sleeps, and He knows all things. He speaks to people by inspiration, from behind a veil, or through a messenger. He spoke to Moses directly. He says He is close, and that He listens to the prayer of everyone who calls on Him. He says, "Call on Me; I will answer your (Prayer)". This is the difference that matters most. The Tao of the book does not speak or command, and no one is told to call on it. God (﷾) speaks and commands, and He tells people to call on Him.
“No vision can grasp Him, but His grasp is over all vision: He is above all comprehension, yet is acquainted with all things.”
“(He is) the Creator of the heavens and the earth: He has made for you pairs from among yourselves, and pairs among cattle: by this means does He multiply you: there is nothing whatever like unto Him, and He is the One that hears and sees (all things).”
“Allah! There is no god but He,-the Living, the Self-subsisting, Eternal. No slumber can seize Him nor sleep. His are all things in the heavens and on earth. Who is there can intercede in His presence except as He permitteth? He knoweth what (appeareth to His creatures as) before or after or behind them. Nor shall they compass aught of His knowledge except as He willeth. His Throne doth extend over the heavens and the earth, and He feeleth no fatigue in guarding and preserving them for He is the Most High, the Supreme (in glory).”
“It is not fitting for a man that Allah should speak to him except by inspiration, or from behind a veil, or by the sending of a messenger to reveal, with Allah's permission, what Allah wills: for He is Most High, Most Wise.”
“Of some messengers We have already told thee the story; of others We have not;- and to Moses Allah spoke direct;-”
“When My servants ask thee concerning Me, I am indeed close (to them): I listen to the prayer of every suppliant when he calleth on Me: Let them also, with a will, Listen to My call, and believe in Me: That they may walk in the right way.”
“And your Lord says: "Call on Me; I will answer your (Prayer): but those who are too arrogant to serve Me will surely find themselves in Hell - in humiliation!"”
God (﷾) has told us His names
The Tao Te Ching says no name fits the Tao, and its writer gives it a name only for want of one. The Qur'an teaches something else: God (﷾) has told us who He is. He is Allah (﷾), the Most Gracious, the Most Merciful, the Holy One, the Creator. "The most beautiful names belong to Allah: so call on him by them". Islam does not claim that people can grasp God (﷾). It says that He named Himself, so that people could know Him and call on Him.
“I do not know its name, and I give it the designation of the Tao (the Way or Course). Making an effort (further) to give it a name I call it The Great.”
“Allah is He, than Whom there is no other god;- Who knows (all things) both secret and open; He, Most Gracious, Most Merciful. Allah is He, than Whom there is no other god;- the Sovereign, the Holy One, the Source of Peace (and Perfection), the Guardian of Faith, the Preserver of Safety, the Exalted in Might, the Irresistible, the Supreme: Glory to Allah! (High is He) above the partners they attribute to Him. He is Allah, the Creator, the Evolver, the Bestower of Forms (or Colours). To Him belong the Most Beautiful Names: whatever is in the heavens and on earth, doth declare His Praises and Glory: and He is the Exalted in Might, the Wise.”
“The most beautiful names belong to Allah: so call on him by them; but shun such men as use profanity in his names: for what they do, they will soon be requited.”
“Say: "Call upon Allah, or call upon Rahman: by whatever name ye call upon Him, (it is well): for to Him belong the Most Beautiful Names. Neither speak thy Prayer aloud, nor speak it in a low tone, but seek a middle course between."”
“No vision can grasp Him, but His grasp is over all vision: He is above all comprehension, yet is acquainted with all things.”
Mercy He has made His own rule
The Tao Te Ching says heaven and earth do not act from a wish to be benevolent. The Qur'an says God (﷾) has made mercy His own rule: "He hath inscribed for Himself (the rule of) Mercy". He calls those who have wronged themselves not to despair of His mercy, for He forgives all sins. In the next verse He tells them to turn back to Him and bow to His will, before the penalty comes.
“Heaven and earth do not act from (the impulse of) any wish to be benevolent; they deal with all things as the dogs of grass are dealt with. The sages do not act from (any wish to be) benevolent; they deal with the people as the dogs of grass are dealt with.”
“Say: "To whom belongeth all that is in the heavens and on earth?" Say: "To Allah. He hath inscribed for Himself (the rule of) Mercy. That He will gather you together for the Day of Judgment, there is no doubt whatever. It is they who have lost their own souls, that will not believe.”
“Say: "O my Servants who have transgressed against their souls! Despair not of the Mercy of Allah: for Allah forgives all sins: for He is Oft-Forgiving, Most Merciful.”
“"Turn ye to our Lord (in repentance) and bow to His (Will), before the Penalty comes on you: after that ye shall not be helped.”
The One who speaks, and a whole way of life
The Qur'an claims to be the speech of this God (﷾), and it invites a test. Muhammad (ﷺ) was sent to all people, and he is the last of the prophets. Islam is not only a belief about God (﷾). It is a complete way of life (deen), with belief, worship, law, family and character together. The page "What is Islam?" shows it whole. Read the Qur'an, test it, and ask whether Muhammad (ﷺ) is the last messenger God (﷾) sent.
“And if ye are in doubt as to what We have revealed from time to time to Our servant, then produce a Sura like thereunto; and call your witnesses or helpers (If there are any) besides Allah, if your (doubts) are true.”
“Do they not consider the Qur'an (with care)? Had it been from other Than Allah, they would surely have found therein Much discrepancy.”
“Say: "O men! I am sent unto you all, as the Messenger of Allah, to Whom belongeth the dominion of the heavens and the earth: there is no god but He: it is He That giveth both life and death. So believe in Allah and His Messenger, the Unlettered Prophet, who believeth in Allah and His words: follow him that (so) ye may be guided."”
“Muhammad is not the father of any of your men, but (he is) the Messenger of Allah, and the Seal of the Prophets: and Allah has full knowledge of all things.”
“This day have I perfected your religion for you, completed My favour upon you, and have chosen for you Islam as your religion.”
“O ye who believe! Enter into Islam whole-heartedly; and follow not the footsteps of the evil one; for he is to you an avowed enemy.”
Reply by reply
Tao Te Ching 73 — Daodejing, chapter 73, paragraph 2
“It is the way of Heaven not to strive, and yet it skilfully overcomes; not to speak, and yet it is skilful in obtaining a reply; does not call, and yet men come to it of themselves. Its demonstrations are quiet, and yet its plans are skilful and effective. The meshes of the net of Heaven are large; far apart, but letting nothing escape.”
Cited for
Chapter 73 says the way of Heaven does not speak, "and yet it is skilful in obtaining a reply". Men come to it of themselves, and its plans are skilful. So the Tao does answer.
The response
The chapter says this, and this page quotes that whole passage. Wang Bi explains the reply as good fortune for those who go with it, and ill fortune for those who go against it. Things come to it because it keeps low, and its plans are the signs it shows. The chapter still says it does not speak and does not call. God (﷾) speaks, and tells people to call on Him: "Call on Me; I will answer your (Prayer)" (40:60).
Where it lands — In the Tao Te Ching the way of Heaven does not speak or call. In the Qur'an God speaks, calls and answers.
Tao Te Ching 62 — Daodejing, chapter 62, paragraph 1
“Bad men it guards, and doth their ill efface.”
Cited for
The Tao Te Ching says, "Bad men it guards, and doth their ill efface." The guilty escape their guilt by the Tao. So the Tao forgives, just as your God does.
The response
The book does say this, and this page does not deny it. Wang Bi says those who are not good should keep to the Way, so that they are not cast off. Yet the book never has the Way speak to the guilty, and no one is told to call on it (73). God (﷾) speaks to sinners as "My Servants". He tells them to turn back to Him, and promises forgiveness to whoever asks (39:53-54; 4:110).
Where it lands — The Tao Te Ching says the guilty escape by keeping to the Way. The Qur'an says God (﷾) Himself calls the guilty, hears them and forgives.
"Tianshi dao", The Encyclopedia of Taoism (2008)
Kleeman writes that the Way of the Celestial Masters (Tianshi dao), founded in what is now Sichuan in the second century CE, marks the formal start of the Taoist religion. The movement traces its origins to a revelation to Zhang Daoling in 142 CE, when Laozi came down to him on Mount Heming to set up a new covenant. Zhang, a mortal, was chosen by the divine Laozi (Laojun). The early community chanted the Tao Te Ching together, reading it by the Xiang'er commentary.
Cited for
The Tao does speak. Lord Lao is the Tao in form, not a man made divine. The Celestial Masters trace their origins to 142, when he came down to Zhang Daoling on Mount Heming and made a covenant. The Xiang'er, an early Taoist commentary, says the One, gathered into form, is Taishang Laojun (Lord Lao the Most High).
The response
Then the question is no longer what the Tao Te Ching says. It is whether this revelation came from God (﷾), and any such claim must be tested. The Qur'an asks to be tested in the same way (2:23; 4:82). It also gives the test of what a message teaches: every true messenger called to God (﷾) alone (21:25). God (﷾) takes no creature's form, for nothing is like Him (42:11). He speaks through messengers (42:51).
Where it lands — A claim that the Tao took form and spoke is not the Tao Te Ching's claim. It is a claim of revelation, to be tested like the Qur'an's.
Perspectives
What the Tao Te Ching says
The book's Tao has no name. It produces all things but claims and controls none of them. In the book it never speaks, and no one is told to call on it.
The book says the lasting Tao cannot be named, and its writer says he does not know its name.
The book says the Tao produced all things. But it makes no claim to own them, and exercises no control over them.
Chapter 73 says the way of Heaven does not speak and does not call, yet obtains a reply. Chapter 25 says Heaven takes its law from the Tao. Wang Bi explains the reply as good fortune for those who go with it, and ill fortune for those who go against it.
Chapter 5 says heaven and earth do not act from any wish to be benevolent. It speaks of heaven and earth, not of the Tao.
Taoist: the Tao is beyond every name and picture
Many Taoists hold that the Tao is beyond names and beyond any human picture. They say it already answers, guards the bad and sides with the good, without partiality. Religious Taoism holds that the Tao took form as Lord Lao and spoke.
The Tao is beyond names. The book says the Tao that can be spoken of is not the lasting Tao. The name that can be named is not the lasting name. To give God names and call Him a person makes Him small.
Rebuttal
Islam agrees that no vision can grasp God (6:103). But not knowing a name is not a reason to think no one hears. God (﷾) named Himself so that we can call on Him (7:180; 17:110).
A God who hears, speaks and has mercy is a human picture. The Tao is above such qualities.
Rebuttal
Islam does not picture God (﷾) as a man: "there is nothing whatever like unto Him" (42:11). The same verse says He hears and sees. Denying Him hearing does not honour Him more; it leaves no one to call on.
The Tao does answer. Chapter 73 says the way of Heaven does not speak, "and yet it is skilful in obtaining a reply". Taoists call this response (ganying): Heaven answers a sincere heart.
Rebuttal
Wang Bi explains that reply: good fortune for those who go with it, and ill fortune for those who go against it. The chapter says it does not call, and the book never tells anyone to call on it. God (﷾) tells people to call on Him, and says He hears every caller (2:186; 40:60).
Chapter 4 says the Tao "might appear to have been before God". So the Tao stands above the one Legge calls God.
Rebuttal
"God" there is Legge's word for the Chinese Di; Wang Bi reads it as the Lord of Heaven. The book says the Tao seems to come before that Di, so that Di is not the Creator. Nothing is before God (﷾), "the First and the Last" (57:3).
The book says the Tao "guards" bad men and wipes out their ill (62), and the guilty escape by it (62). The Way of Heaven "is always on the side of the good man" (79), and Heaven's net lets nothing escape (73). So the Tao shows mercy.
Rebuttal
Granted: the book sees an order in which the good fare well and the guilty can escape. Wang Bi says those who are not good should keep to the Way, so that they are not cast off. But the Way never speaks to them. God (﷾) calls sinners "My Servants" and tells them to turn back to Him. Whoever asks His forgiveness will find Him forgiving (39:53-54; 4:110).
Chapter 79 says the Way of Heaven has "no partiality of love". A God who has mercy by His own choice is partial. The Tao's lack of partiality is the higher justice.
Rebuttal
The same line says the Way of Heaven "is always on the side of the good man" (79). God's (﷾) mercy is not favour to a few: "My mercy extendeth to all things" (7:156). And Allah (﷾) "is never unjust in the least degree" (4:40).
The Tao did take form and speak. The Xiang'er, an early Taoist commentary, says the One is the Tao. Gathered into form, the One is Taishang Laojun (Lord Lao the Most High). Lord Lao is not a man raised to be a god; he is the Tao itself in form. The Celestial Masters trace their origins to 142 CE, when he came down to Zhang Daoling and made a covenant.
Rebuttal
That is a claim of revelation, to be tested like any other, the Qur'an included (2:23; 4:82). The Tao Te Ching does not make it: its writer says he does not know the Tao's name (25). The Qur'an also tests what a message teaches. Every true messenger taught "there is no god but I; therefore worship and serve Me" (21:25). And God (﷾) takes no creature's form, for nothing is like Him (42:11).
The Islamic perspective
No one can grasp God (﷾), and nothing is like Him. But He is living, He hears and sees, He speaks to His messengers and hears those who call on Him. He has told us His names.
No vision can grasp God (﷾), and nothing is like Him. Yet He hears and sees.
God (﷾) is the Living. He speaks to people by inspiration, from behind a veil, or through a messenger, and He spoke to Moses directly.
God (﷾) is close. He hears everyone who calls on Him, and promises to answer.
God (﷾) has told us His names, and tells us to call on Him by them.
God (﷾) has made mercy His own rule. He forgives those who turn back to Him and ask His forgiveness. He is the First and the Last.
Islam is a complete way of life. Muhammad (ﷺ) was sent to all people, and the Qur'an invites everyone to test it.