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Chinese clubs to pay 100% tax on foreign transfers

Shanghai v Western Sydney - Asian Champions League

SHANGHAI, CHINA - FEBRUARY 28: Oscar #8 of Shanghai SIPG celebrates after scoring his team’s second goal during the AFC Champions League 2017 Group F match between Shanghai SIPG and Western Sydney Wanderers at Shanghai Stadium on February 28, 2017 in Shanghai, China. (Photo by Visual China/Getty Images)

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The days of Chinese Super League sides spending eye-popping figures on a handful of international superstars are over — either that, or those figures are about to double — for now, at least.

[ MORE: Oscar given 8-game ban for petulant display in China ]

China’s Football Association announced Thursday that, effective immediately, any foreign player signed for a fee exceeding $6.63 million would be subject to a 100-percent tax on top of the fee paid to acquire the player. The tax will remain in effect until the end of China’s ongoing transfer window, July 14. The tax will also apply to Chinese players signed for a fee exceeding $3 million.

It’s Chinese authorities’ latest attempt to prevent big spending by CSL clubs, which has in every instance been detrimental to the development of young Chinese players making their way through the academy system. The taxed money will then be reinvested in “youth training, construction of public sporting facilities and scientific progress in football development,” according to a statement by the CFA.

Just last week, China was eliminated from contention to qualify for next summer’s World Cup in Russia. The only time China has ever qualified for the World Cup was in 2002.

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