The 36-year-old has not played since having his contract at Greek side Olympiakos terminated in December 2018.
He had to deny he had retired in May after his agent said he had "ended his career as a champion".
Toure said: "Since the start of my career I have always loved challenges and now I will make history once again with Qingdao Huanghai."
He added: "I can't wait to let my football do the magic once again."
Qingdao are top of Chinese League One but have never played in the top flight.