New Zealand must promote new industries to compete globally
Saturday 3 October 2026 · 2 outlets · 2 reports · updated In this story Robert Muldoon, University of Oxford
Oxford University professor Ngaire Woods suggests New Zealand needs to develop new industries to remain competitive. As global powers like China and the United States support specific sectors, the expert argues that New Zealand's current approach must adapt to geopolitical volatility.
Key facts
4 facts
- Ngaire Woods is a professor of global economic governance at Oxford University and founding dean of the Blavatnik School of Government.
- China's 'Made in China 2025' strategy helped it lead in electric cars and solar panels.
- The United States has implemented export controls on advanced computer chips under both Biden and Trump administrations.
- New Zealand's current economic view is influenced by the 'Think Big' projects of the early 1980s.
The full story
1 min read · 2 outlets
New Zealand needs to promote new industries to compete globally, according to Oxford University professor Ngaire Woods. Woods suggests that the traditional free trade market is becoming an outdated concept as major powers like the United States and China actively back specific sectors.
The professor argues that the current New Zealand approach of letting the market operate without intervention is ineffective in a world where global giants use industrial policies to support national champions. She noted, "You can't prepare yourself to be the best rugby team in the world and then discover the competition is actually ballet".
Woods explains that the US and China are "weaponising interdependence" through trade policies, investment controls, and subsidised credit to foster economic alliances. This shift forces countries to consider how industrial policy can build resilience within a more geopolitical global landscape.
To prepare, Woods recommends that the government should back entire industries rather than individual companies to help Kiwi businesses compete vigorously at home and abroad. She believes New Zealand officials must quickly learn how to develop necessary industrial policy capabilities.
Compiled from reports by RNZ and Newsroom.