China to levy hefty tax on overseas transfers

Beijing: China will effectively double the cost of its clubs buying foreign football players in a move aimed at slowing the influx of pricey overseas stars and encouraging homegrown talent.

China’s Football Association announced that any club that pays more than $6.63 million for a player transfer must pay the same amount to a CFA youth development fund. The tax will be in place until the end of the Chinese league’s summer transfer window on July 14. Flush with cash from corporate backers, Chinese Super League clubs have shaken up international football in recent years by offering astronomical transfer fees and wages for players from European teams.