In search of a new source of tax revenue, Cambodia could then be pushed to collect domestic excise duties, which would shift the tax burden onto Cambodian consumers. This means that trade diversification is essential for Cambodia. Dependence on one country has made Cambodia less elastic from external risks, as evidenced by the shock waves sent by the tourism and clothing industry that depends on China in the wake of the COVID-19 pandemic. Much of the case for free trade agreements is based on improving economic efficiency, which enables each signatory State to engage in the economic activity in which it has specialized, to participate in international trade and to do better than would be the case through the exploitation of a more independent economy. For Cambodia`s Free Trade Agreement (FTA) with China to be a success, it must both improve the country`s economic competitiveness and promote the kind of Chinese investment that creates local jobs. China and Cambodia signed a free trade agreement (FTA) in Phnom Penh on Monday, with Cambodian Premier Hun Sen and China`s State Council and Foreign Minister Wang Yi participating in the signing ceremony. . . .