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1.
A person who is half Chinese and half Italian.
"Your mom is Italian and your dad is Chinese right? So doesn't that make you Chitalian?"

Example 2:

Kady: "Yo Ken and Francesca had a baby and she's so cute!" "Chitalian babies are so cool"
Por Ken-Totally-Made-Up-This-Word 05 de noviembre de 2007
 
2.
Italian goods manufactured in China. Sold on the premise that they are Italian, but actually come from China.
My wife fell in love with a pair of Italian boots, but was disappointed to find they were Chitalian.

That chick was hot in her Chitalian leather coat.

After paying a heap of money for those Italian heels, Suzie was pissed to find they were Chitalian.
Por MR WOLF 01 de mayo de 2011