Chinese Super League clubs will only be allowed to play three non-Chinese players per game in their next season - which begins in March.
A rule change has reduced the number of foreigners allowed in a move which could slow down the wave of big-money signings from Europe.
Chelsea striker Diego Costa has been linked with a move to China that would be worth £30m a year.
A statement said the new measures will address “irrational investments.”
Previously the rule was “4+1” - four foreigners of any nationality plus one Asian in a matchday squad.
Teams will now also be required to name two under-23 Chinese players in their matchday squads, with at least one in the starting XI, with the Chinese Football Association also looking into “signature fees and other illegal activities” in recent transfers.
Shenhua would be one club hit by the new rules as they have six non-Chinese players in their squad, including Tevez, another former Chelsea forward Demba Ba and former Newcastle striker Obafemi Martins.
Costa has been linked with a move to Tianjin Quanjian, who signed Belgium midfielder Axel Witsel for a salary of over £15m a year this month.
Nothing surprises me in football anymore, ever since I joked and clapped above my head with thousands of others, singing EASY EASY EASY, when 3-0 up against Leeds with less than 20 left on the clock.
Yaya Toure has turned down a move to China that would have paid him £430,000 a week
I must say that surprises me. I thought he would have been an ideal choice for China - coming towards the end of his career (33), not exactly been the happiest at City (although playing now). I’m sure lots of big European clubs would be interested in signing him when becomes a free agent in the summer.