100% Percent Tax Set To Be Imposed On Chinese Clubs

Chinese clubs in the Super League might be subjected to a 100% tax on their signing as the transfer window in China is about to be thrown open.

The new restriction is being put in place by the Chinese Football Association to reduce the spending of Chinese clubs, which has gone through the roof in recent years and it is hoped that this new measure will help in stemming the tide.

Last January, Chinese clubs spent over 330 million Euros in the transfer market in January, which surpassed the amount spent by clubs in the English Premier League within the same period.

The extra tax imposed on transfers will be transferred to a government agency and once it is enforced, it will automatically double the transfer cost of any player.

This might affect the transfer plans of Chinese clubs who are looking to bring the likes of Wayne Rooney and Diego Costa to Asia this season.

Last season, Shanghai SIPG paid Brazil 60 million pounds for Oscar to prize him away from Chelsea, while Carlos Tevez was signed by Shanghai Shenhua for £40m with a 310,000 pounds weekly payment.

This has led to the limitation of the inclusion of foreign players in the team’s lineup as clubs only allowed to field only three foreign players every game.

Tianjin Quanjian made a bid for Chelsea’s Diego Costa as the club owner, Shu Yuhui, revealed that Chinese Super League rules limits their abilities to sign foreign players.

The Chinese Super League’s rules have also increased the quota for under-23 local players and the financial fair play rules are in line with the rules introduced by UEFA to curb the spending of clubs in the Europe.

This rule will affect the influx of top players to the Chinese league as clubs would not spend a huge amount on a player that might not be able to play.