Italy, China sign US$2 bln trade accords

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Chinese President Hu Jintao said China's economy is showing positive signs of recovery during his state visit to Italy. He also urged business leaders in China and Italy to join hands to tackle the challenges posed by the global financial crisis.

China and Italy have signed 38 cooperation agreements worth over 2  billion US dollars.

President Hu Jintao and Italian Prime Minister Silvio Berlusconi pledged to boost their countries' efforts to further promote bilateral relations and cooperation in a number of areas. China and Italy have signed 38 cooperation agreements worth over 2 billion US dollars. This includes a joint venture with Fiat to produce cars and engines in China. With investment totaling 400 million euros, the project between Fiat and Guangzhou Automobile Industry Group is expected to yield a yearly production of 140-thousand cars and 220-thousand vehicle engines after the first phase.

Other agreements include a 42 million US dollar sales deal for electronics and components. Italian bank Mediobanca and the China Development Bank also agreed to support cross-border investment.