In this context, two handles mean a sovereign ruler has the power to both confer rewards and mete out punishments. Both are basic ways of governance and have been subjects of discussion in different schools of thought. Ancient scholar Hanfeizi (280?-233 BC) attached great importance to the role of rewards and punishments in governance, believing that both should be given according to the law. One who abode by the law should be offered rewards and one who broke the law should be given punishment. This would make people behave in accordance with the law as they love rewards and fear punishment. He also emphasized that a sovereign should exercise his power in such a way so that rewards and punishments were given exactly as the law requires and that such power was not abused as a tool to seek personal gain.

The term "two handles" refers to punishment and honors. What is meant by punishment and honors? Death penalty is a form of punishment and reward is a form of honor. Officials fear punishment and seek honors. When a sovereign exercises these two powers, officials will undoubtedly fear punishment and seek honors.

(Hanfeizi)