The Chinese Football Association has announced plans to slow rampant spending by taxing big transfer fees paid by Chinese Super League clubs. The Chinese government is unhappy with the huge fees paid recently, seeing them as an embarrassment to the nation, and on Thursday the Chinese Football Association issued new transfer guidelines, with a heavy tax on big fees.

Last week the CFA announced its first plans to reduce the number of foreigners allowed in each Chinese Super League team, a major u-turn after years of big spending on foreign players. But the government’s new focus is on fees, which are growing almost as fast as wages for big foreign signings.

Yesterday the CFA released an 18-point program, as part of its ‘plan for the reform and development of Chinese football.’ This included a new tariff on big transfer fees to direct money to a ‘football development fund’ to pay for grassroots football. In practice this will mean a tax on fees beyond a certain level, expected to be roughly €30m.

The Chinese government has encouraged big spending in recent years but has grown increasingly uneasy with the big fees spent on players in the last few months. The CFA warned last week against “irrational investment” and the government eventually wants to have the final say on deals, limiting them to a state-imposed maximum of what they deem to be a reasonable value for a player. Yesterday’s plans are not as advanced as a proposed €30m fee cap, but represent a step in that direction.

Shanghai SIPG paid €65million (£56m) for Oscar last month and when Tianjin Quanjian were interested in Diego Costa last week, they seriously considered paying the €90m (£78m) price they had been quoted by intermediaries. Chelsea always insisted Costa was not for sale.