The league's current pre-season transfer window is set to break records in the wake of Oscar's £60m move to Shanghai SIPG from Chelsea and Shanghai Shenhua's £40m capture of Carlos Tevez.
The Argentina striker has reportedly signed a deal worth £310,000 a week.
A spokesperson for China's General Administration of Sport said clubs in the country were "burning money".
The spending was also described as "a grave phenomenon" in a question and answer session on the organisation's official website on Thursday.
The spokesperson added that the government body would "strengthen examination and supervision of clubs' financial affairs, progressively control clubs' expenditures on first-team players and ensure favourable financial conditions".
In December, Cristiano Ronaldo's agent Jorge Mendes claimed the player was offered an £85m annual salary after an unnamed Chinese club approached Real Madrid with a £250m bid.
Arsenal manager Arsene Wenger and Chelsea counterpart Antonio Conte are among the leading figures to have expressed concern about players being lured to China because of the financial benefits.
The 2017 Chinese Super League campaign begins in March and finishes in November.
Take part in our Premier League Predictor game, which allows you to create leagues with friends.
China's chief sports governing body has announced plans to cap the big spending of Chinese Super League clubs.