The disadvantages of excessive foreign exchange control are as follows: in the short term: 1. Importers cannot freely choose markets and commodities, and it is difficult to buy the cheapest commodities from the most comparative market; 2. Because imports are strictly restricted by foreign exchange supply, the supply of imported goods is difficult to meet domestic demand, resulting in the price of imported goods rising in China; 3. Importers get monopoly profits, including commodity premium and foreign exchange premium. Long-term: 1, hindering the inflow of foreign capital. Due to the implementation of foreign exchange control, the use of foreign exchange is strictly restricted, and its attraction to foreign investors is greatly weakened; 2, hinder the development of trade. Under the condition of foreign exchange control, the foreign exchange rate is often overvalued, which increases the price of domestic goods in the international market and reduces their international competitiveness, while strict foreign exchange supply also hinders the development of imports; 3, unable to obtain the dynamic benefits of foreign trade. Foreign trade is the result of international division of labor. Blocking foreign trade means blocking international division of labor and can't enjoy the dynamic benefits brought by the development of international division of labor. Foreign exchange control refers to the restrictive measures taken by a government to balance the international payments and maintain the exchange rate of its own currency. It is also called foreign exchange management in China. The government's international trade policy of restricting imports through laws and regulations to restrict international settlement and foreign exchange transactions. Foreign exchange control is divided into quantity control and cost control. The former means that the State Administration of Foreign Exchange directly restricts and allocates the volume of foreign exchange transactions, and achieves the purpose of restricting exports by controlling the total amount of foreign exchange; The latter means that the State Administration of Foreign Exchange implements a multiple exchange rate system for foreign exchange transactions, and uses the differences in foreign exchange transaction costs to adjust the structure of imported goods.