Chinese visit brings Italian deals worth $2 bln

* Italy, China sign 38 deals worth $2 bln

* Fiat JV to produce cars, engines in China

* Mediobanca, China development bank sign MOU

(Recasts, adds total value, other deals)

ROME, July 6 (Reuters) - Chinese President Hu Jintao's visit to Italy generated over $2 billion worth of deals between the two countries on Monday, including a Fiat SpA (FIA.MI: Quote, Profile, Research, Stock Buzz) joint venture to produce cars and engines in China.

Italian Prime Minister Silvio Berlusconi said Italy aimed to become the third-largest foreign investor in China within three years as the two countries signed 38 business agreements.

Among the biggest of those is carmaker Fiat's 50-50 venture with China's Guangzhou Automobile Industry Group to produce cars and engines in China from the second half of 2011, with a total investment of 400 million euros ($560 million). [ID:nMAT009726]

Fiat, which has just taken a 20 percent stake in U.S. auto maker Chrysler, said the plant would produce 140,000 cars a year and around 220,000 motors after a first phase of development.

Other agreements include a Finmeccanica (SIFI.MI: Quote, Profile, Research, Stock Buzz) memorandum of understanding (MOU) with Chinese company Chongqing on sales in the Chinese market of electronics and components in a deal worth $42 million and an MOU between Italian bank Mediobanca (MDBI.MI: Quote, Profile, Research, Stock Buzz) and the China development bank to support cross-border investments.

Fiat also signed an additional seven deals worth $225 million with Chinese companies.

Fiat has long sought a strong partner in China, where car sales are booming in contrast to slack demand in Europe and the United States. China's car sales soared 47 percent year-on-year in May to 829,100 units. [ID:nRON004699]

Fiat and Chrysler combined have production of about 4.2 million cars a year and together rank fifth equal to Korea's Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz) among world car makers.

Fiat said the new plant would be built in Changsha, capital of Hunan province. The project is eligible for support from the Chinese government.