This article examines China’s strategic utilization of its burgeoning sports industry, specifically football, as a means of global influence and the implications of this approach. The study draws on an analysis of policy documents, academic literature, and empirical examples to explore the evolution of China’s sports diplomacy and the role of football in this context. The research elucidates how China’s leadership has orchestrated policies to transform the nation from hosting sporting events to becoming a global powerhouse. The government’s initiatives underscore this ambition, integrating the Belt and Road Initiative (BRI) with sports diplomacy further amplifying China’s soft power. The concept of guanxi, deeply rooted in Chinese society, influences business relationships, also impacting sports diplomacy. The study showcases China’s European football club acquisitions as emblematic of a multifaceted strategy blending cultural and economic influence. Shifts in foreign investment policies and state support have influenced the trajectory of Chinese investments in foreign football clubs. This research contributes to understanding how China leverages its sports industry for global influence and the complex interplay of politics, economics, culture, and diplomacy. The analysis underscores the adaptation of established concepts like guanxi in sports diplomacy. It elucidates China’s evolution from hosting sporting events to actively shaping global sports diplomacy. The study further underscores the broader implications of China’s approach, and the transformation of football as a soft power tool. As China redefines its role in the global sports arena, this research offers insights into its evolving strategies and the multifaceted implications for international sports and diplomatic relations.