This advises that a wise person, when mediating between two parties, keeps certain things confidential to avoid conflict. A foolish person repeats everything and causes trouble.
In Chinese interpersonal culture, discretion is highly valued. Mediators and go-betweens are expected to smooth over tensions, not amplify them.
It teaches the art of strategic communication. The saying elevates discretion as a social skill and warns that careless talk damages relationships.
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