Beijing to levy 100pct tax on overseas football transfers

China will effectively double the cost for its clubs to buy 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 USD6.63 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.

Transfers for Chinese players valued at over $3 million will also be taxed at 100 percent.

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.

The new policy could potentially derail mooted deals from Chinese clubs to acquire English Premier League stars such as Wayne Rooney and Diego Costa. Cristiano Ronaldo’s agent said in December that the Portuguese forward turned down an overture from a Chinese club for a transfer worth hundreds of millions of euros.

In recent weeks the CFA has also proposed a new rule that would require teams to play an under-23 Chinese player for every foreign player on the field.

After decades of dismal national team results, President Xi Jinping has pinpointed improving Chinese football as a top priority to boost national self-confidence and prestige. AP

Germany mulls letting China under-20s play league soccer

The German soccer federation is mulling a proposal to allow China’s under-20 team to play friendly matches in the fourth tier of its league system. Because the Southwest Regional League is comprised of 19 clubs, each currently has two match-days free that can be used for friendly games. The one-off action would allow China’s under-20 team to prepare for the 2020 Olympics in Tokyo. Clubs would receive about 15,000 euros (USD16,700) in compensation for two home games against the Chinese side, if the plan is approved. The Chinese are planning on a base near Heidelberg in the state of Baden-Wuerttemberg. Southwest Regional League members are meeting on July 11, when a decision will likely be made in consultation with the German soccer federation, Wiedemann said.