Just last week the Financial Times was reporting: Italy turns to China for help in debt crisis:
Italy’s centre-right government is turning to cash-rich China in the hope that Beijing will help rescue it from financial crisis by making “significant” purchases of Italian bonds and investments in strategic companies.
Yesterday, Reuters reported: S&P cuts Italy ratings one notch, outlook negative:
Sept 20 (Reuters) - Standard and Poor's downgraded its unsolicited ratings on Italy by one notch to A/A-1 and kept its outlook on negative, a major surprise that threatens to add to concerns of contagion in the debt-stressed euro zone.
It seems odd to me that Third World China would be bailing out First World Italy, but if they were close to a deal, the ratings cut on Italy gives China an excuse to walk away.