In Shang times, people believed in ancestor worship. They spoke to their ancestors and asked for advice and help by using oracle bones. 

In T'ang times, Confucianism, Taoism and Buddhism became known as the Three Doctrines, or the "Three Teachings". In T'ang times, a man might honor his ancestors by following the rigid rules of social behavior as dictated by Confucianism, attend a Buddhist pageant, and practice Taoist breathing exercises, all in the same day. These three doctrines were an important part of daily life.

At all times, the ancient Chinese believed in a great many gods and goddesses, magical beings, dragons, and ghosts. 

The Kitchen God was an important ancient deity. Once each year, right before the new year, this god's job was to make an annual report about the behavior of the household to his boss, the "Jade Emperor". As part of the Chinese New Year celebration, sweets were often exchanged so that the kitchen god's report would be sweet and flattering. (Nobody believes in the kitchen god anymore, but almost everyone in China still hands out treats during Chinese New Year.) 

See the links below to discover some of the marvelously creative ancient Chinese deities.

Magical Dragons

The God Checker 

Paper Joss

The Paper Joss

Oracle Bones & Ancestor Worship