The leadership of China's Xi is being threatened by the omicron outbreak and real estate crisis, according to George Soros.

• On Monday, Soros stated during a teleconference panel with the Hoover Institution that the omicron Covid-19 variant poses a threat to Xi Jinping's leadership as China is no longer able to control the virus.
• The Chinese vaccines were created to tackle the Wuhan variant, but the world is currently grappling with other variants," Soros stated. "Xi Jinping cannot confess this truth while he is awaiting a third term - he is concealing it from the Chinese people as a shameful secret.
• No immediate comment from a Chinese government spokesperson was obtained upon contact by CNBC.

According to billionaire investor and philanthropist George Soros, the position of Chinese leader Xi Jinping is in jeopardy.

On Monday, Soros stated during a teleconference panel with the Hoover Institution that the omicron Covid-19 variant poses a threat to Xi Jinping's leadership as China is no longer able to control the virus.

The Chinese vaccines were created to tackle the Wuhan variant, but the world is currently grappling with other variants," Soros stated. "Xi Jinping cannot confess this truth while he is awaiting a third term - he is concealing it from the Chinese people as a shameful secret.

No immediate comment from a Chinese government spokesperson was obtained upon contact by CNBC.

According to Soros, Xi's only viable option has been to enforce China's zero-Covid policy, which has faced criticism for its significant economic consequences, both domestically and internationally.

The Chinese Communist Party will decide at its National Party Congress this year whether to grant Xi a third term in office. However, Soros contends that Xi's efforts to impose "total control" over the country through strict lockdowns may jeopardize his chances of being reappointed as the party's leader, as the strategy is unlikely to be effective against a variant as infectious as omicron.

Xi ‘under attack’

Although Xi holds significant power over the military and surveillance of citizens, Soros stated that he has numerous opponents.

Despite his control over all power levers, there is a growing opposition to Xi within the CCP, which has been expressed in various party publications. This opposition is driven by those who are inspired by Deng Xiaoping's ideas and seek to increase the role of private enterprise.

Additionally, he pointed out that China's economy is facing a crisis due to its real estate market, which is a significant driver of the country's growth.

The real estate boom is based on an unsustainable model, as people have to pay for apartments before they are constructed, relying on credit. The system is built on land sales, with local governments deriving most of their revenues from the ever-increasing prices.

The Chinese real estate industry is facing pressure from authorities to reduce its reliance on debt, resulting in defaults by several firms, including a real estate giant.

Soros stated on Monday that it is uncertain how the authorities will handle the real estate crisis. He added that Xi Jinping has various tools at his disposal to restore confidence, but the key is whether he will utilize them effectively. In Soros's view, the second quarter of 2022 will reveal whether Xi Jinping has been successful in reestablishing confidence.

"Xi's prospects don't seem favorable at the moment," he remarked.