Early Shang thought was based upon a cyclic notion of time, corresponding to the seasons. This notion, which remained relevant throughout Chinese history, represents a fundamental distinction from western philosophy, in which the dominant view of time is a linear progression. During the Shang, fate could be manipulated by the great deity Shang Di[?] (ch. 上帝; pinyin shang4di4), most frequently translated as "Lord on High". Ancestor worship was also present, as was human and animal sacrifice.
When the Shang were overthrown by the Zhou, a new political, religious and philosophical concept was introduced called the "mandate of heaven". This mandate was said to be taken when rulers became unworthy of their position, and provided a shrewd justification for Zhou rule. During this period, archaeological evidence points to an increase in literacy and a partial shift away from the faith placed Shang Di, with ancestor worship becoming commonplace and a more worldly orientation coming to the fore.
In around 500 BC, after the Zhou state weakend and China moved in to the Spring and Autumn Period, the classic period of Chinese philosophy began (it is an interesting fact that this date nearly coincides with the emergence of the first Greek philosophers). Of the many schools founded at this time and during the subsequent Warring States Period (the so-called 百家 (bai3 jia1; "100 schools"), the four most influential ones were Confucianism, Daoism (often spelled "Taoism"), Mohism and Legalism. Mohist schools, such as the Logicians, were largely quashed during the Qin Dynasty, where Legalism was the official philosophy. Legalism remained influential until the emperors of the Han Dynasty adopted Daoism and later Confucianism as official doctrine. These latter two became the determining forces of Chinese thought until the 20th century, with the introduction Buddhist philosophy negotiated largely through perceived similarities with Daoism. When the Communist Party took over power, previous schools of thought were denounced as backward, but their influence on Chinese thought remains.
There's a lot more to it, but unfortunately I'm not an expert in this subject... Some gaps to be filled: more about the common concepts, differences between Western and Chinese philosophy, something about modern Chinese philosophy... you name it
Added a very simplistic explanation of the impact of Buddhist philosophy, which was sizeable though perhaps not as significant as established schools -- prat
See also: Chinese classic texts, Eastern philosophy, philosopher, Chinese history
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