can i apply tourist visa at Milan while i am Malaysian

You can apply for it in Milan.
If you are employed by a company in Shanghai, the employer will get you the invitation letter of a duly authorized unit and alien employment permit, and then you should apply for a work Z type with the required documents. You can try to change L type to work Z type at the exit and entry administration of the local PSB.

David, so many thanks on your reply. I still have some more questions need to ask, i hope you don't mind.
1) How many sort of L type visa for foreigner to apply as a tourist going into China? what are their different in application fees, duration stay.
2) What documents should i presented for the application of L type?
3) Any conditional apply for the foreigner who want to get job at Shanghai? in sence of education background, salary paid and etc.
4) What kind of company can only employ foreigner for the job? in the sence of their paid up capital, the establishment of the company and etc
5) can i know the full name of PSB and the address, telephone contact at Shanghai.
thank you.

1) Dear, there are those types including single-entry L type (88.3 ringgits), double-entry L type (108.3 ringgits), multiple-entry L type within 6 months (138.3 ringgits) and multiple-entry L type within 12 months (178.3 ringgits). In most cases, one may be given stay duration of 30 days. And sometimes, one may also get stay duration of 60 days and days.
2) The documents include the application form and a passport-sized color photo taken recently, your passport and copy of its data page, round trip air tickets and hotel booking record.
3) Usually, you should have degree certificate and at least 2-year work experience related to the job you find.
4) According to what I know, any company can hire the foreigner.
5) PSB refers to the public security bureau. Here is the address and telephone of Shanghai Municipal Public Security Bureau: No. 128, South of Wuning Road; (021) 62310110.
Or may I know which district you will go to in Shanghai so that I can find the local PSB contact information for you.