إذا كنت في وداع شخص وقلت له هذه العبارة، فمعناها: لا أراك الله مكروها أو سوءا أو شرا
وإذا قرأتها كما في الجملة التالية
i see no evil in this step
فمعناها: لا أرى في هذه الخطوة سوءا أو شرا

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Note added at 32 mins (2005-08-31 14:59:00 GMT)
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وبالتالي تعني: يحفظك الله أو في أمان الله

In general, the phrase "see no evil" is a shorter version of the idiom "see no evil, hear no evil, speak no evil", which refers to a situation in which a passive or fearful person avoids involvement in a situation that he came across. It is also common behavior for the average citizen living under an authoritarian system.

In the context of Art/Literary, this may refer to the story of "the three wise monkeys", or a statue that depicts them in which the first covers his eyes, the second covers his ears, and the third covers his mouth. The legend is attributed to Far Eastern culture, and engravings of those monkeys can be found on different ancient buildings in Asia. Miniature replicas are also common home accessories.



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Note added at 1 hr 4 mins (2005-08-31 15:31:05 GMT)
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If the phrase is in the imperative, it may indicate an advice to someone to stay out of trouble:

كأنك لم تر شيئا
أفضل لك أن تؤثر السلامة
دع الخلق للخالق

If you adress someone, imperativ form: "see no evil"

لا تظن ظن السوء

ليست هناك نوايا مبيتة

bearing in mind that both are from the classic, formal and literary register.

It reminds me of a beautiful saying of the Prophet PBUH:

لا ضرر ولا ضرار

meaning: "There should be neither harming nor reciprocating harm” (Saheeh Al-Jami 7517)

كما في العبارة I wish that you see no evil.

Could you please give more context next time ?