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Domestic Politics

Taiwan's presidential election is set to be contested amidst increased pressure from China to accept the “one country, two systems” offer.  Incumbent President Tsai Ing-wen of the pro-independence Democratic Progressive Party will be challenged by Pro-China Han Kuo-yu, from the Kuomintang party. [Reuters]

The Taiwanese government introduced an “anti-infiltration Act” ahead of the Presidential vote in a bid to prevent and minimize Chinese lobbying and influence over Taiwanese politics. Although the opposition parties have opposed the legislation and questioned the timing, the government suggests that the scope of the Act is limited only to political donations, lobbying, disrupting social order, disrupting elections, or aiding in elections. [The Diplomat]

International Relations

After detaining multiple Chinese fishing vessels for illegally fishing in its waters, Indonesia has increased sea patrols, stationed three warships, readied military aircraft, and deployed roughly 600 navy and army personnel to islands around the South China Sea. The Indonesian PM also met military personnel on a disputed island on Wednesday in an attempt to send a strong message to Beijing. [SCMP]

Japanese PM Shinzo Abe canceled his Middle East trip in the wake of rising tensions in the region. He was slated to visit Saudi Arabia, the UAE, and Oman ahead of the scheduled visit of Japanese Self-Defense Forces to discuss commercial shipping. Tokyo has officially called for de-escalation but has simultaneously dispatched a destroyer and patrol planes to the region, causing domestic unrest. [Mainichi]

China has appointed a new director of the central government’s liaison office in Hong Kong, amidst the worst political crisis in the city in decades. Luo Huining, after being named deputy director of the financial and economic affairs committee of the National People’s Congress on December 28 was abruptly appointed to his new role. This has come as a surprise to even insiders in China as Luo has no experience in this kind of role and was considered to be heading towards a semi-retirement post. [SCMP]

Over the last week, four Chinese nationals were arrested for allegedly spying on a US naval base in Florida. Despite their claims of being tourists, images of restricted areas were found on their phones. Interestingly, last year, a Chinese national pleaded guilty to taking illegal photos of the same installation. [SCMP]

Society

After 59 people in Wuhan province of China contracted unidentified viral pneumonia, the Centers for Disease Control (CDC) issued a level one “watch” health notice for travel to Wuhan in China’s Hubei Province[Taipei Times]  

Science & Technology

As China implements more regulations to protect intellectual property rights, Chinese applications for patents and income from royalties for Chinese inventors have risen sharply. There has been a 10% increase in Chinese applications for international patents and a 5% increase in invention patent applications domestically. There has also been a huge increase in the amount paid by foreign companies for Chinese intellectual property, growing by 19.2%, or US$ 6 billion. [SCMP]

Image Source: Brookings