The chapter states the book's central formula in its shortest form. The way is constantly without action, and yet nothing is left undone.
Every word of that is contested. Some recensions read the first clause as saying the way does nothing, others as saying it does not act and there is nothing it does not do, and the recovered manuscripts do not all agree with the received wording. What is not in doubt is the shape: a denial of activity followed immediately by a claim of complete result.
The line is the closest thing the text has to a thesis, and it explains why non-action is not passivity. If nothing is left undone, then the state being described is not an absence of outcomes. It is an absence of a particular kind of effort, the kind that pushes, contrives and forces, and the chapter's claim is that the outcomes arrive anyway and arrive more completely.
The rest of the chapter turns this into a political scenario with an unusual feature: it anticipates its own failure. If lords and kings could hold to it, the ten thousand things would transform of themselves. And if, in transforming, desire arose, the chapter says it would be settled with the namelessness of the uncut block.
That second step is what distinguishes the passage from wishful thinking. The programme is expected to generate a problem, since transformation stirs appetite, and a remedy is named for it, which is a return to the unnamed rather than a new rule. The chapter ends on the result: still and without craving, the world settles of itself.