Reports suggest the Brazilian attacking midfielder will cost Jiangsu around £38million to break their Chinese transfer record set when they signed Ramires from Chelsea for £25m recently.
Liverpool were close to luring Teixeira to the Premier League late in the January transfer window but did not want to go any higher than £30m, allowing Jiangsu a clear path to his signature.
When asked by French newspaper L'Equipe whether the reports were true, Shakhtar boss Mircea Lucescu said: "It's true, we have sold to China."
Teixeira has been with Shakhtar since 2010 and has scored 89 goals in 223 appearances for the Ukrainian giants, including 26 in as many appearances in all competitions this season.
Despite the English window closing on Monday night, Chinese transfers are allowed until February 26.