Prime Minister Giorgia Meloni will discuss with Group of Seven allies Italy’s decision on whether to pull out of a controversial investment pact with China, according to a senior government official.

Bloomberg reported earlier this month that Italy has signaled its intent to quit the massive Belt and Road Initiative, which has funded $900 billion in infrastructure projects globally. Opposition lawmakers called on the government to respond in parliament on the issue following the article.

“While a final decision has not been taken, there are no doubts that Italy belongs strategically to the West,” Giorgio Silli, an undersecretary in the foreign ministry, said during a parliamentary hearing on Wednesday in Rome. “The pact is clearly not binding.”

Europe is recalibrating its relationship with China, looking to reduce dependencies on the authoritarian country while avoiding a harsh decoupling that would roil western economies. Beijing’s continued close relations with Moscow have further tested the European relationship with China.

Italy became the only G-7 country to sign onto the Belt and Road Initiative in 2019 when Giuseppe Conte was prime minister. Meloni’s government will have to make a decision on whether to exit the deal by Dec. 22 or the pact will automatically renew for five years.

The decision will be taken “keeping in mind the ongoing broader reflection with NATO, G-7 and EU partners on the relation with China,” Silli said.

He added that the government is actively participating in updating the EU’s strategy on China relations. G-7 leaders will meet in Hiroshima, Japan, starting May 19.

“There is clearly a need for Europe to work on de-risking some important and sensitive parts of our relationship,” European Commission President Ursula von der Leyen said last month. “De-risking but not decoupling.”