The new tax rule means that any loss-making clubs buying foreign players will have to pay the same amount as the transfer fee into a fund which would help develop young Chinese players.

In a statement the CFA said: ‘To benefit the healthy and steady development of professional football leagues and curb the irrational spending on players, those clubs which are in the red should pay the same sums of money as they are spending on buying players to the Chinese Football Development Fund.’

This new policy will come into effect from the summer transfer window, beginning 17 June.

The tax was introduced as part of an 18-point programme of new rule changes the Chinese FA has introduced to stop the high transfer fees of foreign players. It was also announced that from next season clubs will have to have the same number of players under the age of 23 as they do foreign players to increase opportunities.

The Chinese government at first encouraged the spending on big name players however, over the recent months have grown increasingly uneasy with the growing fees.

Chelsea’s Diego Costa has previously been expected to complete a £76m move to Chinese team Tianjin Quanjian but under these new tax rules the move will cost £152m.

It has also been reported that Manchester United’s Wayne Rooney has been offered two £50m deals which would jump to £100m if he decides to move to the Chinese Super League this summer.