Hegel's conception of a universal history of reason is usually interpreted as a Eurocentric project that is dismissive of the genuine contributions by other cultures. In contrast to this assumption, his views concerning Chinese philosophical traditions evolved significantly in his late Lectures on the Philosophy of Religion. Hegel increasingly acknowledges a unique contribution of Confucianism and especially Daoism. While Confucianism is depicted as a natural religion of magic in which the emperor governs as the supreme magician, Daoism revolts against the emperor's nepotism and turns to the Dao to elaborate a speculative philosophy of reason. The paper argues that the search for a rational form of mysticism is the basis for increasingly valuing the Chinese contributions to a conception of reason that incorporates mystical elements.