UPDATE 2-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: 株価, 企業情報, レポート) 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.