The former Gunner believes Chelsea should not sell Oscar.
The Blues have reportedly accepted a £60m bid from the Chinese Super League club for the Brazil international.
However, Keown thinks Antonio Conte will be left with a much weaker squad if he leaves mid-season.
“I think his departure would weaken Chelsea’s cause — and you question the ambition of the player,” Martin Keown told the Daily Mail.
“Even though he is not playing at the moment, the 25-year-old would be moving away from the best league in Europe.
“Oscar is surely well paid enough as it as at Chelsea but, with a transfer fee of £52m, the club will no doubt happily take the pot of gold.
“Odion Ighalo was in a similar situation last year.
“He has not been starting recently for Watford but if he re-establishes himself in the team and starts scoring again then I’m sure he would be happier than if he had taken the money and gone to China.”