SHANGHAI – The Italy pavilion at the 2010 Shanghai World Expo attracted more than 7 million visitors and was second in popularity only to the China pavilion. Slated to reopen to the public in late March, the revamped Italy pavilion will serve as a Shanghai showcase for the Southern European nation's celebrated culture and lifestyle.

The reopening of the Italian pavilion comes amidst accelerating exchanges between Italy and the world's second-largest economy. Bilateral trade climbed to $51 billion last year and Italy attracted a record number of Chinese visitors on the back of an expedited visa policy advocated by Attilio Massimo Iannucci, the Italian Ambassador to China.

Now Italy's refreshed Expo pavilion will provide an authentic Italian experience for Chinese visitors closer to home. It is one of the few pavilions retained after the Expo and the first to be converted to a multifunctional space.

"The new Italian pavilion will be a testament to the strong Sino-Italian relationship and friendship between Italy and Shanghai," said Vincenzo De Luca, Consul General of Italy in Shanghai.

When it reopens, the four-story building will feature permanent and temporary exhibition spaces, an exclusive club and a gourmet restaurant serving Italian and Chinese cuisine. The permanent exhibition space will contain Ferrari's first museum outside of Italy.

Initially, the pavilion will serve as a tourist attraction, but aims to attract top corporate and government functions in the future.

The new Italian pavilion will also help Italian companies access the China market, said De Luca.

"There are many smaller Italian brands who want to enter the Chinese market, but lack the resources to do so," the Italian consul general said. "The pavilion will provide a platform for them."

"Currently, there are more than 900 Italian companies - mostly small and medium-sized enterprises - in East China, according to the Italian consulate in Shanghai. While machinery manufacturers have a strong presence, the Italian government hopes to see more Italian companies further expand into China's fashion, clean energy and food and beverage industries, De Luca said.

Top Italian fashion houses like Armani, Prada and Bulgari have long had a strong foothold in China, but the market lacks strong mid-range Italian brands.

"In fashion in particular, we have room to promote high quality but not top-tier," he said.

De Luca believes China's burgeoning clean energy industry also presents opportunities for Italian companies.

"Because Italy lacks raw materials, we have been compelled to invest heavily in the green economy and develop innovative approaches to energy efficiency," he said.

Italian companies are well-positioned to help China improve sustainability in factory product lines and provide materials for eco-friendly buildings, he added.

Meanwhile, De Luca is justifiably proud of Italy's culinary prowess, which he suggests may be catching on with Chinese diners. Shanghai boasts fifty Italian restaurants, the most establishments dedicated to any western cuisine in the city.

"Chinese are now discovering Italian food," he said. "Most of these restaurants did not exist five years ago."

In coming years, De Luca said he hopes to see a rise in Italian exports to China and increased Italian investment in China's green economy and high-tech sector.

Italy is the third-largest European supplier of imports to China – nearly half of which are electrical machinery - and China's fifth-largest trading partner in Europe. China is Italy's tenth-largest trading partner. China and Italy aim to reach $80 billion in bilateral trade by 2015.

Meanwhile, the Chinese appetite for travel to Italy is growing. The Italian consulate in Shanghai delivered 87,000 visas last year, more than double the 41,000 processed in 2010.

Overall, 168,000 Chinese tourists visited Italy in the first eight months of 2011, an increase of more than 70 percent over the same period the previous year.