Summary
Highlights
In 2016, President Xi Jinping declared China would win the World Cup by 2050, become a soccer superpower, build 70,000 football pitches, and 50,000 football schools. This vision sparked a massive spending spree in global football, both in player transfers to China and club acquisitions in Europe.
Many prominent players like Oscar, Hulk, Ramirez, Carlos Tevez, and others were attracted to China by the exciting project and, more significantly, by the astronomical wages offered. Carlos Tevez, for example, reportedly earned £615,000 a week for a short stint.
President Xi's vision also led to significant Chinese investment in European clubs. Examples include Wanda Group buying a stake in Atletico Madrid, CMC investing in City Football Group, Suning Holdings acquiring Inter Milan, and Chinese companies purchasing AC Milan and several UK clubs. By mid-2017, Chinese investment in European football surpassed $3 billion.
In late 2017, Chinese authorities dramatically halted these investments, deeming them an 'overheated, risky football investment bubble.' State-controlled media criticized debt-fueled purchases, and the State Council restricted overseas investments in real estate and football clubs. Banks were discouraged from providing credit, and a 100% luxury tax was imposed on foreign transfers over a certain value, effectively doubling their cost and stopping them immediately.
The speaker notes that China's experience is a cautionary tale, with parallels to current investments in the Middle East, particularly Saudi Arabia. Key lessons include that success in football cannot be forced or bought through large investments alone, and that building a competitive ecosystem requires patient development and a strong fan culture, which China failed to achieve. Furthermore, political and economic winds can change rapidly, impacting these investments.
Towards the end of the 2010s, many Chinese overseas investments unraveled. Inter Milan, owned by Suning Holdings, faced financial strain due to capital control reversals. Owner Steven Zhang had to take a loan from Oak Tree with harsh conditions, eventually leading to Oak Tree taking control of the club. A similar situation occurred with AC Milan.
The U-turn also decimated the domestic Chinese Super League. Jangsu FC, after winning the championship in 2020, ceased operations three months later when Suning Group stopped non-core business activities. Guangzhou Evergrande, a dominant team, suffered a debt crisis and was relegated. Despite appointing high-profile managers, China's national team failed to qualify for the 2018 and 2022 World Cups, and its FIFA ranking dropped to 94th in early May 2025.