When he is faced and threatened by what appears to be a gang, Chance is relaxed and shows no fear. This reaction does appear somewhat naive and stupid, but might possibly be the sign of a sage. Imagine a block of wood, a plain block of wood without any carvings or adornments. It is simple and pure, whole. This one block of wood has achieved simplicity in oneness.
Chance is like an uncarved block of wood.
He is simple, pure, and honest. One knows what he is thinking because he does not hesitate to say it. He is not honest and innocent in this way to amuse anyone or to be liked. Chance is a simple, uncarved block. Chance seems wise because he appears to fit the qualities of a Taoist sage as described in the text, but his wisdom may not be true.