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A Chinese puzzle

Just what should we make of the Chinese Super League (CSL)? Is a fair basis of comparison the development of soccer in the United States? Both have a penchant for signing 'marquee' players, big or fairly big names who are past the peak of their careers, but might still attract the crowds.

Thus, defender José Fonte has agreed a £4.3m move from West Ham United to Dalian Yifang. The 34-year old is likely to earn about £120,000 a week after tax. He had 17 months left on his £70,000 a week West Ham contract. However, he has not played since October because of an ankle injury.

The political environment in China is a lot more complex than the United States, or at least less transparent. A few years ago I spent a fascinating few days at a workshop on government-business relations in China in Beijing. I learnt a lot, but I also realised how much I didn't know or understand.

Jonathan Sullivan of the University of Nottingham aptly commented that the business environment and policy-making in China is the result of a mix of 'top-down experimentation, exploitation of loopholes, unintended consequences, ad hoc reactions and political imperatives.' Not so different from the UK and the US really!

Ultimately the Communist Party calls the shots. But there is room for initiatives at local level and there is plenty of scope for rich and powerful businessmen as long as they do not challenge the authority of the Party.

President Xi saw football as a way of exerting soft power, alongside the development of economic and military power by the People's Republic. But it didn't all quite go to plan with big capital outflows and not enough investment in developing local talent so as to build up the national team. Hence, clubs have been reined in and the global impact of Chinese spending in the transfer market is not as great as it was.

The Chinese FA, which is under government control, has brought in a tax of 100 per cent on transfers worth more than $7m. Consequently, Javier Mascherano's transfer to Hebei China Fortune was just below the $7m tax threshold. In the two previous winter transfer windows, the CSL spent more on transfers than any other league. This winter they spent $86m, down from $500m, and well behind the €600m spent by Premier League clubs. This led in turn to a 30 per cent cut in the value of CSL television rights.

Attendances had been going up, but there is a concern that they will now go into reverse. All 16 clubs are loss making, but then it took 14 seasons for the Premier League to become profitable. Optimists insist that the CSL is still at an early stage of its development. Much will depend on the political climate.

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