He will be joining the former Blues boss Andre Villas-Boas in Shanghai.
Earlier this month he shared that the transfer is “90% certain”.
In 2012, Oscar joined Chelsea for £25m.
He will reportedly be earning £400,000 a week and the transfer fee will rank as the seventh-highest of all time.
1st January is the transfer window opening and it will be closed on 31st January at 23:00 GMT.