Cramer: 'In This Great Bear Market That Is China, The Government Will Be Able To Stabilize The Rate Of Decline'

After suffering significant declines on Monday, the Shanghai Composite Index again opened drastically lower Tuesday. However, by the end of closing Monday, the market recovered and ended the day down 1.68 percent.

CNBC's Jim Cramer was recently seen discussing how the Chinese government might have played a role in this recovery. Here is what he said.

Chinese Government: Natural Buyer

"I am watching where the government is playing this and, believe me, the government is the natural buyer in this situation," Cramer began. "Government let the market come in really bad.

"And then they let the market drop about 4 percent and futures looking down. And then they just jammed it up, plus 1 percent. Then they let the sellers come in and they stabilize it down 1 percent."

Related Link: 3 Stocks Worth Buying During China's Stock Market Crash

'We Are China'

"It's kind of a victory for the bulls because it didn't finish down 4. So, they have taken the thing down 10 percent, typical correction, and now they have been trying to stabilize it. And it's brilliant, because you catch the shorts looking the wrong way, you get the longs thinking that maybe I can get out of such situations."

He continued, "I continue to believe that in this great bear market that is China, the government will be able to stabilize the rate of decline. And that was a victory for the bulls, which is why the market rallied. 'We are China.' It's like 'We are Penn State;' 'We are China.' So, let's not confuse things."

Government Is Putting Trading Skills To Work

"But, the Chinese government is a very good trading organization, they've always been— through history, China's government has been good traders, whether it be for iron ore, whether it be for copper. So, they are putting their skills to work – tactical skills, firepower to work in the Chinese market," Cramer concluded.

Image Credit: Public Domain