I don’t think the quote captures the deeper meaning of “non-doing” or “non-action” that is referred to throughout the Tao Te Ching. It is about tempering desire while still doing what needs to be done. If you enter a situation with no motive other than to see and understand clearly what is happening, you will not add to the conflict. But if you have a particular goal or motive in mind then you will only make things worse. Like trying to calm water using your hand when all that is needed is to do nothing and the water will calm itself naturally. 

 It’s a fair point. Thanks for explaining