Italian Premier Giuseppe Conte pledged to make Italy the first Group of Seven nation to join China's ambitious Belt and Road initiative.
Despite objections from the United States and concerns within his governing coalition, Conte told parliament
Speaking to parliament, Conte said the move would not call into question Italy's position in the transatlantic alliance or with European partners.
"We want to first and foremost rebalance our trade, which is not favourable to us now. Our exports to China are far lower than other European countries," Conte said.
Conte said the details have been finalised during months of consultations at all levels of government, stating that the memorandum is not legally binding and would give Italy access to an enormous market.
Italy is expected to sign a memorandum of understanding for the infrastructure-building venture during this week's visit by Chinese President Xi Jinping.
China is ready to strengthen "a global strategic partnership" with Italy, Xi wrote in Italian daily in Corriere della Sera on the eve of his visit.
"With my visit I wish to set out together with Italian leaders the guidelines for bilateral relations and take them into a new era," Xi wrote.
Xi said China was ready to coordinate more closely with Italy over international issues such as climate change.
He also said China and Italy could develop cooperative projects in sectors such as ports, shipping, telecoms and pharmaceuticals.
Italy's signature would be considered a major legitimation of the project that envisions overland and maritime routes connecting China with Europe.
A White House official has warned Italy against joining, calling it a Chinese "vanity project".
European governments declined to sign a joint declaration on the "Belt and Road" at a forum last year in Beijing. They argued it lacked standards on financing and transparency.
