That = because? Or that = which (refers to the whole sentence before it)?

Context:

Chapter2
It is because every one under Heaven recognizes beauty as beauty,that the idea of ugliness exists.
And equally if every one recognized virtue as virtue, this would merely create fresh conceptions of wickedness.
For truly 'Being and Not-being grow out of one another;
Difficult and easy complete one another.
Long and short test one another;
High and low determine one another.
Pitch and mode give harmony to one another.
Front and back give sequence to one another'.
Therefore[1] the Sage relies on actionless activity,
Carries on wordless teaching,
But the myriad creatures are worked upon by him; he does not disown them.
He rears them, but does not lay claim to them,
Controls them, but does not lean upon them,
Achieves his aim, but does not call attention[2] to what he does;
And for the very reason that he does not call attention to what he does
He is not ejected from fruition of what he has done.