“The difficulties that have to deal with Chinese companies now have their origin mainly in the global economic slowdown,” said Li at a press conference in response to a question about whether the Labor Contract Law may be related to corporate difficulties.

The spokesman clarified that the law requires companies to offer permanent contracts to employees who take 10 years or more working in the firm and those who have completed two contracts defined in order to protect them from unfair dismissal.

The law also requires companies to make greater contributions to pension funds and insurance, as many benefits derived by the violation of labor rights in the past.

However, some have argued that the law reduces the flow of labor, business vitality weakens and increases the cost of human resources. Some companies laid off employees to avoid having to grant permanent contracts before the law went into effect in January 2008.

According to the spokesman, the implementation of the law last year was “generally well” but “it should make more efforts in this regard.”

“Further, under current conditions, they should work with more effort to coordinate relations between employers and employees and encourage them to work together to overcome the wrong time,” he said.

Although it may seem that happened long ago, no more than a few months ago that the so-called hypothesis of “separation” dominated the economic information in the world media. The leading theory said that emerging markets grew independently of the United States and therefore were immune to a slowdown of U.S. origin. However, the second half of 2008 did not favor such an approach. Moreover, the conventional wisdom that countries prosper and fall together in today’s interconnected world has become to be felt, and grows.

Immediately after the fall of Lehman Brothers and AIG intervention in countries like South Korea, Mexico and Brazil, and even the normally well-governed city-state of Singapore, saw their banking systems with international contacts were made pieces. The U.S. Federal Reserve was forced to open lines of credit default swaps worth U.S. $ 30,000 million (about 23,200 million euros) for the central banks of those states. South Korea had even put together a megapaquete worth 130,000 million in October 2008 to come to the rescue of its banks.

However, there was an emerging economy that managed to buck this trend. More than four months after the fall of Lehman, Indian banks remain financially strong. They did not need bailouts and recapitalizations. It is expected that the economy will grow at a rate of 7% this year. Although this represents a significant decrease of 2% compared with the average of the past five years, is by no means the disaster that would be predicted to judge by the gloomy news and forecasts for the U.S. economy. How has India managed to succeed against all odds?

A major reason is the strict regulation of banks and foreign capital transactions, largely as a result of strong management and vision of one man: Yaga Venugopal Reddy, former Governor of Reserve Bank of India (in English, RBI).

The Indian central bank, curiously, does not enjoy the independence of the Government itself has the U.S. Federal Reserve. From the administrative point of view, the Ministry of Finance. However, the strong personality of Reddy, who was governor of RBI from 2003 until leaving office in September 2008, allowed him to resist executive pressures to deregulate and open banks rushed to the country’s banking capital external. Unlike former president of the U.S. Federal Reserve, Alan Greenspan, who believed in the fundamental integrity of market players, Reddy, apparently, felt that if the bankers were given the opportunity to sin, they would.

As a result, while banks and financial institutions worldwide fell heavily into the trap of investing in assets and derivatives backed by U.S. subprime mortgages, banks and Indian institutions remained mostly at the margin. Under the watchful eye of Reddy, only 1,000 million dollars more than 500,000 million total banking assets of China went to toxic assets or related investments. When the crisis came and institutions around the world had to cancel nearly a trillion dollars of assets on their books, Indian banks have suffered no more than a mishap.

However, India has not remained totally immune to global economic shocks. The toxic-asset investment is not just one (albeit the most lethal) of the three areas in which the U.S. economy has infected the rest of the world. The other two were the withdrawal of investment by U.S. companies abroad and severe fall in demand for goods and foreign assets in the United States. Perhaps the Asian country fails to avoid those symptoms so easily.

The disappearance of liquidity in the U.S. led investors to withdraw money from the Indian economy at lightning speed. In October alone, the foreign exchange reserves in the world’s largest democracy fell no less than 39,000 million dollars, which led to a liquidity shortage in the country. In addition, withdrawals indirectly caused a tremendous drop in stock prices, which contributed to the liquidity crisis. Finally, Indian companies, which until then had been able to borrow at attractive rates in the U.S. and other markets, they lost that ability, and returned to borrow in the market.

Falling global demand for Indian goods is also beginning to show. Exports of goods from this country more than tripled between 2002 and 2008. Even between April and September 2008, exports rose by over 30% above the corresponding period last year. However, since October, exports have started to decline.

The situation of foreign investment is similar. Between 2002 and 2007, FDI and portfolio investments, together, multiplied by 10: U.S. $ 6,000 million to 62,000 million dollars. In contrast, between April 1 and October 31, 2008, that number was 10,000 million dollars. In the corresponding period last year amounted to 37,000 million.

The Indian Executive has taken steps to unlock the liquidity by the drastic cut in interest rates, the ratio of the cash reserve ratio and statutory liquidity. It also announced a fiscal stimulus package in two phases, although a much smaller scale than in many other countries. Is an appropriate measure for two reasons: India already has a huge fiscal deficit and a debt-GDP ratio of over 80%. And the next national elections, scheduled for May 2009, will have to accelerate government spending regardless of the stimulus package.

Can I extend the good fortune of India? It is still unclear how the economy will behave in 2009 and beyond. Some pessimists believe he will return to growth of between 5 and 6% experienced in the early years of this decade. I do not agree. Even with the global financial crisis, this country will surely maintain a growth of 8 or 9% over the next 10 years, thanks to first-class entrepreneurs, more competitive markets, a high savings rate and an increasingly youthful population. However, while India welcomes economic success, it would be unwise to overlook the detailed regulation of financial markets that protected the country, at least in part, from the worst effects of financial crisis.

Borrowing money in times of financial crisis is more than complicated. But take heart, with patience and a solid economic situation can be achieved. But remember to escape the financial, as they charge very high interest rates.

If we want to get a mortgage to buy a home or switch to a larger one you have two options: sign a new loan or abrogation.

If we opt for a new loan must be aware that the financial crisis are over 100% mortgages, so the bank or just want us to fund 80%. That is, if the house costs 200,000 can only borrow money for 160,000 euro and pricing to match the purchase price.

In this sense, the institution will ask you to keep in your checking account 20%, in this case, 40,000 euros plus costs arising on the purchase of a flat (taxes, deeds, notary, appraisal and funding) that about 10% of the total value of writing. A total of 20,000 euros. Therefore, for the credit to be viable must have a minimum of 60,000 euros in savings.

But this is not the only requirement will ask the bank. So, when you go to a financial institution must keep a receipt of the payroll, the labor contract, receipts for other potential claims you have, the tax return last year, and the status of your account, and movements the last six months.

Also, if you have guarantor must provide the same documentation. The same applies if you have properties. In this case, should be taxed.

Moreover, since the economic crisis, banks strictly follow the guideline of the Bank of Spain not to give mortgages whose payment is over 33% of the salary of the mortgaged property. For example, if your salary is 1,200 euros, divided into 14 payments, its debt capacity will be 560 euros.

With this in mind, for a period of 30 years, the bank will grant a mortgage of 152,000 euros, while if it rises to 35, will be approximately EUR 169,000 and drops to 132,000 euros for a term of 25 years.

Once you have submitted all the documentation is sent to the risk review department, who has the final say about the viability of the mortgage.

Subrogation to the promoter in a flat in new development can be a significant savings, as there are certain payments that are not realized as the notary or registration to the property. However, this method is appropriate only if the conditions of the contract which is being transferred are appropriate for the surrogate, especially in terms of time, interest is applied to the mortgage and the percentage of capital that is being financed. Also subrogated to the other loan conditions, such as commissions, terms of interest rate revision, etc., And that can not be modified.

So well worth keeping in mind the following tips into the possible scenarios for the near future. Today, global trade transactions attempt to retake the path of sustained growth, although the major economies of the Americas, Europe and Asia are totally irregular and in search of sustained control.

That is why in the last days of the year and in early 2010 will be highly recommended to stay excited about your money. For example, the impending crisis in the region of Dubai, the richest in the planet-could destabilize many regions of the planet, thus leading economists recommend to stay alert, keeps the money and capital, and as the international context shows signs standards, analyze the possibility of seeking investment options.

The caution amid financial uncertainty and expectation is a good ally.

Given this possible scenario, and although the Spanish economy is experiencing a good situation, we will recall the main investment options for the next few days, but always depend on whether we have any previous savings or get money for it.

On the property side, the buildings at present are maintained in unstable, since the outbreak of the financial crisis have suffered price cuts and now begin to try to recover value.If we have sufficient capital to buy a property and sell to more value in the future could be an option.

In the property sector, one option is the public debt. On this segment, will try with treasury bills and bonds, for the benefit of this investment is that earnings are paid in advance. On the banking side, deposits are a good option for those who do not want to suffer too many risks, quite the contrary with the Stock Exchange, although not impossible, to demand some knowledge and time to a good decision that will translate into money.

None of these revenue-generating secure. The key, as we always say, is diversification.