In Traditional Chinese Medicine (TCM), Dan Dou Chi belongs to the 'Cool/Acrid herbs that release the Exterior' category. Herbs that release the Exterior aim to to treat the early stages of diseases that affect the upper respiratory tract, the eyes, the ears, the nose, the throat or the skin. TCM believes that External diseases such as colds or allergies can only invade the body if the External environment overwhelms our Wei Qi (the TCM version of the immune system). In order to counteract this invasion Cool/Acrid herbs aim to induce sweating by dilating our capillary pores so that they release more sweat. The belief is that this will expel the disease from the body and stop it from invading further.

As suggested by its category Dan Dou Chi is Cool in nature. This means that Dan Dou Chi tends to help people who have too much 'Heat' in their body, although with less effect than a plant that would be Cold in nature. Balance between Yin and Yang is a key health concept in TCM. Those who have too much Heat in their body are said to either have a Yang Excess (because Yang is Hot in nature) or a Yin deficiency (Yin is Cold in Nature). Depending on your condition Dan Dou Chi can help restore a harmonious balance between Yin and Yang.

Dan Dou Chi also tastes Bitter and Pungent. The so-called 'Five Phases' theory in Chinese Medicine states that the taste of TCM ingredients is a key determinant of their action in the body. Bitter ingredients like Dan Dou Chi tends to have a cleansing action on the body by clearing Heat, drying Dampness and promoting elimination via urination or bowel movements. On the other hand Pungent ingredients tend to promote the circulations of Qi and Body Fluids. That's why for instance someone tends to sweat a lot when they eat spicy/pungent food.

The tastes of ingredients in TCM also determine what Organs and Meridians they target. As such Dan Dou Chi is thought to target the Lung and the Stomach. In addition to performing respiration, the Lungs are thought in TCM to be a key part of the production chain for Qi and the Body Fluids that nourish the body. The Stomach on the other hand is responsible for receiving and ripening ingested food and fluids. It is also tasked with descending the digested elements downwards to the Small Intestine.