Chinese leader Xi Jinping is unwilling to accept Western vaccines despite the challenges China is facing with COVID-19, and while recent protests there are not a threat to Communist Party rule, they could affect his personal standing, U.S. Director of National Intelligence Avril Haines said on Saturday.

Although China's daily COVID cases are near all-time highs, some cities are taking steps to loosen testing and quarantine rules after Xi's zero-COVID policy triggered a sharp economic slowdown and public unrest.

Haines, speaking at the annual Reagan National Defense Forum in California, said that despite the social and economic impact of the virus, Xi "is unwilling to take a better vaccine from the West, and is instead relying on a vaccine in China that's just not nearly as effective against Omicron."

"Seeing protests and the response to it is countering the narrative that he likes to put forward, which is that China is so much more effective at government," Haines said.