Finance chiefs from the world’s rich economies are set to propose a new partnership on supply chains that’ll be open to other nations and would require countries to have minimum standards on human rights and environmental policies to join. 

Officials are well advanced in drafting a statement for the Group of Seven meeting taking place from May 19 to May 21, 2023, with the additional details on diversifying supply chains to be included, according to people familiar with the matter. The planned partnership will aim to start by the end of 2023, they said, declining to be named as the drafting isn’t public.

Efforts to diversify the supply chain of renewable energy resources is also likely, one person said. China has a dominant position in the supply of some rare earths, and policymakers from around the world have spoken of the need to diversify sources.

Finance ministers and central bank chiefs from the G-7 began a second day of talks on May 12 in Niigata, Japan, with three hours of closed-door morning talks on global financial stability.

Shoring up supply chains is among the top concerns at the G-7 gathering, alongside concerns over the financial sector, the war in Ukraine and debt restructuring. The G-7 finance chiefs will be looking to show more progress on these issues than is possible in the more disparate G-20, which includes China and Russia.

Read more: G7 Financial Leaders Seek to Diversify Supply Chains

The strengthening of supply chains inevitably has a geopolitical element, given China’s importance in supplying and manufacturing for the global economy. While the U.S. is pushing to reduce reliance on China, some European countries are showing some reluctance.

Speaking in Niigata, European Union Economic Commissioner Paolo Gentiloni warned that a decoupling from China presents a risk for global commerce. 

“What we are talking about is not closing our trade with China but making our supply chains more secure in some strategic sectors like rare minerals,” Gentiloni said in an interview on the sidelines of the summit. “I think you have to build your own capacity in some of these sectors. This is absolutely needed.”

Talks on May 12 will continue through the afternoon to be followed by a social dinner. Meetings resume the morning of May 13, with a concluding statement and press conference set for around 12:30 PM Japan time.

Japan, as 2023’s G-7 host, invited officials from emerging economies including Brazil and Indonesia to the gathering. That’s a departure from protocol aimed at countering China’s growing influence with the so-called Global South.

With recent Group of 20 meetings marred by discord over Russia’s invasion of Ukraine, the G-7 has allowed the U.S. and allies to push priorities such as tightening up sanctions on Russia and diversifying supply chains from China.

Treasury Secretary Janet Yellen said May 11 Washington intends to crack down on Russia’s ability to skirt sanctions imposed by the U.S. and allies after its invasion of Ukraine. She hopes to discuss with her G-7 counterparts a new set of possible restrictions on outbound investments to China that the Biden administration has been mulling for some time but has not yet finalized.

Read more: Tanker Company Moving Russian Oil Loses Insurance Over G-7 Cap

Yellen also warned failure to avoid a looming federal government default would undermine Washington’s ability to provide international leadership and defend U.S. national security.

Policymakers will discuss the macro economic outlook as a confluence of risks hang over summer 2023. 

European Central Bank Governing Council member Joachim Nagel said May 11 inflation remains “very sticky.” Asked whether borrowing costs may still be rising in September 2023, the Bundesbank president said, “there’s nothing off the table.”

Officials also took advantage of sight-seeing tours organized by Niigata local authorities to promote the prefecture famous for its sake, rice and skiing.

Nagel toured Niigata’s historical homes and gardens, trying on a samurai hat for local press. ECB Governor Christine Lagarde visited a sake factory and a garden where she was greeted by crowds of school children waving French and other G-7 country flags.