In a recent LinkedIn post, Thomas Hoon shares critical lessons learned from 13 years in China, highlighting a common pitfall for businesses operating within or near Chinese-influenced economic spheres. Hoon uses the example of a well-funded small to medium-sized enterprise (SME) that failed despite having the right product, timing, and market, attributing its downfall to a premature focus on signing contracts.
According to Hoon, the persistent question of “When can we sign?” signals a transactional approach that can alienize potential partners in China.
“In China, that question is a funeral bell. It tells the other side you’re transactional. You’re in a hurry. You don’t understand how this works.”
Hoon emphasizes that in this business culture, the true deal is often forged in less formal settings, such as shared meals, long before any paperwork is involved. The contract, in his view, serves merely as a confirmation of an agreement already reached.
Understanding the ‘Playbook’ Beyond China’s Borders
A key insight from Hoon’s post is that this dynamic is not confined to businesses directly entering China. He argues that many companies are already operating within a Chinese-influenced ecosystem, whether they recognize it or not, due to interconnected supply chains, capital flows, and market competition.
Thomas Hoon points out that businesses succeeding in this environment, whether they are exporting to China or competing with Chinese firms domestically, possess a deep understanding of this underlying business playbook.
“The businesses that navigate this well, whether they’re selling into China or competing against Chinese firms at home, all share one thing: They understand the playbook. Not to copy it. To work with it intelligently.”
The Urgency of Adapting Business Strategies
Hoon stresses that this is not a distant or future concern but an immediate challenge that requires current attention. He suggests that comprehending the nuances of how Chinese businesses operate and build resilient ecosystems is crucial for effective competition and collaboration.
Key Takeaways from Hoon’s Analysis
Hoon outlines several areas of understanding that businesses need to develop:
- The underlying motivations and operational methods of Chinese companies.
- Strategies for building and engaging with robust business ecosystems.
- Actionable steps for businesses to compete or collaborate intelligently in a globally influenced market.
The author concludes by reiterating the pervasive influence of Chinese capital, supply chains, and competitors, urging businesses to assess their understanding of this influential playbook.
“The question isn’t if they affect you. It’s whether you understand the playbook.”
Hoon announced a live session to delve deeper into these strategies, offering insights typically reserved for high-paying corporate clients. This educational initiative aims to equip businesses with the knowledge to navigate the complexities of operating within or alongside Chinese-influenced economic structures.
📝 About This Content
This article is based on insights shared by Thomas Hoon on LinkedIn.
📅 Originally posted on March 22, 2026 | View original post on LinkedIn →