Watchman Nee explores the significance of Romans 7, emphasizing that while Romans 6 teaches freedom from sin, Romans 7 reveals the necessity of being liberated from the Law. He explains that many Christians struggle with sin because they attempt to fulfill God's demands through their own efforts, leading to frustration and failure. The chapter illustrates that true deliverance comes not from trying harder but from recognizing our utter weakness and relying on Christ's power. Ultimately, Nee highlights that through Christ's death and resurrection, believers are freed from the Law's demands and empowered to live a fruitful life in God.