China buys city in the Brazilian Northeast for R$9 trillion!? But what did China want in Paraíba, with an investment almost equal to Brazil's GDP?

An economic revolution that did not happen: China's R$9 trillion investment in the Mataraca mega project and the suspicions that brought it down, given that it is 120 times greater than Paraíba's GDP and almost equal to Brazil's total GDP.

Get ready to witness a historic transformation that almost happened in the heart of the Brazilian Northeast. Mataraca, a small city in Paraíba, was about to become the new epicenter of global development with an investment colossal R$9 trillion coming from China. Imagine a futuristic metropolis, with a state-of-the-art offshore port and cutting-edge infrastructure, emerging where only 8.300 inhabitants live today. However, this ambitious project was abruptly canceled due to a series of suspicions and irregularities that came to light.

This ambitious project not only promised to revolutionize the local economy and transform the city into a futuristic urban center, similar to Dubai and Doha, but also place Brazil on the map of great global powers of innovation and development.

China buys Brazilian city for R$9 trillion reais!? What did China want in Paraíba?

Mataraca is a city located in the Northeast region of Brazil, close to the border with Rio Grande do Norte. With an area of ​​174 km² and a population of just 8.300 inhabitants, the city may seem small, but it has a considerable Gross Domestic Product (GDP) of R$230 million. Its economy is diversified, with emphasis on tourism and mining.

Mining, especially titanium extraction, is the municipality's main economic activity. This mineral is highly valued on the international market, attracting interest from several countries. However, export logistics are a challenge, as cargo needs to be transported along a 121 km road to the port of Cabedelo, increasing costs and decreasing efficiency.

Chinese investment

A group of Chinese investors, known as Brasil CRT, expressed interest in overcoming these logistical barriers. They plan to build an offshore megaport and transform Mataraca into a city of the future.

The proposal was discussed in meetings with the local city hall, and a protocol of intentions was signed on December 11, 2023, with the presence of mayors from the region, state secretaries, representatives of the federal government, priest and councilors. On the occasion, the anthems of China and Brazil were played, as well as a prayer to bless the new venture.

What is an offshore port?

China's planned offshore port for Mataraca will not be a conventional port. This innovative infrastructure will be built away from the coast, similar to oil platforms, allowing large vessels to be accommodated in deep waters. This approach is advantageous as it eliminates size limitations for ships, making Mataraca a strategic point for international companies.

Project benefits

• Generation of 100.000 jobs
• Attracting international investments
• Development of local infrastructure
• Boost to tourism
• Modernization of the city

With the construction of the port, it was expected that more than 100.000 direct and indirect jobs would be created during the construction phase. Furthermore, the port should become one of the most important in the Northeast, favoring the local economy and attracting even more investment.

The international city of Mataraca

The project planned by China is not limited to just the construction of the port. The proposal includes the creation of an international city that would be a multifunctional and self-sufficient center. The urbanization would be planned to accommodate a diversity of housing, from family homes to sophisticated apartments.

Infrastructure planned by China

China's planned new city would be equipped with ultra-modern infrastructure, including:

• Renowned educational institutions
• Modern hospitals and clinics
• Dynamic commercial spaces
• State-of-the-art sports facilities
• Diverse shopping center

Furthermore, the project envisaged a modern public transport system, with options such as subways and innovative methods of transportation, facilitating mobility for residents and tourists.

The suspicions and investigation by the Public Prosecutor's Office

Despite the promising project, it was not without controversy. The value of the investment, R$9 trillion, raised suspicions, given that it is 120 times greater than the GDP of Paraíba and almost equal to the total GDP of Brazil. This generated distrust among experts and led to investigations by the Public Ministry of Paraíba. Prosecutor Ellen Veras Ximenes ordered that a letter be sent to Mataraca City Hall, which would have a period of 30 days to forward to the prosecutor's office the report with the protocol of intentions signed with the Chinese group and any other document signed in the partnership.

See some of the suspects listed below:

• It is suspected that the work is a copy of a project by a Danish office for a futuristic district in Shenzhen, in southern China;
• The Chinese consulate general in Recife stated that Brasil CRT does not carry out official activities as a company in Chinese territory;
• Lack of details on how resources for the work would be obtained;
• Lack of a website (with organizational information and references to other buildings) or contacts available for communication with the company.

Project cancellation

After these suspicions became public, the Chinese group decided to cancel the project in Mataraca. In an interview with Folha Online, one of the Chinese group's representatives, Jianing Chen, refused to reveal which investor consortiums were involved and how many employees worked at Brasil CRT. He also used a proverb to disqualify the questions: “Summer crickets cannot talk about the ice, and well frogs cannot talk about the sea.”

Faced with doubts, the Chinese group decided to cancel the project in Mataraca and notified Brasil CRT to do so. According to Chen, they will carry out another larger investment project in another state in Brazil, but he did not say which one. The mayor of Mataraca, Egberto Madrugada, who seemed enthusiastic about the Chinese promises, did not comment on the cancellation.

Reflections on the future

If realized, the project could not only transform Mataraca, but also have a significant impact on the economy of Paraíba and Brazil. The proposal for an international city with an offshore port represented a paradigm shift for regional development. However, suspicions and a lack of transparency ended up undermining the credibility of the venture, leaving Mataraca waiting for new opportunities that could, in fact, materialize.