Investors should be on ones toes when it comes to trusting China over President Donald Trump, CNBC’s Jim Cramer said Monday.
“I’m aghast we depend the People’s Republic of China more than we trust the White House,” Cramer said on “Squawk Box.” “The advantage of coverage this morning is that the president is lying. I’m not willing to say that he’s lying. We can doubt him, but in the end we’re doubting a guy that didn’t wish the market to crash.”
Cramer was referring to Trump’s comments at the G-7 summit Monday in France, where he said Beijing is close at hand to reenter negotiations and begin serious talks.
“China called last night our top trade people and said ‘let’s get bankroll b reverse to the table’ so we will be getting back to the table and I think they want to do something,” Trump told reporters.
At a later put through a mangle event, Trump said he didn’t want to talk about phone calls, saying that talks between U.S. and Chinese pursuit officials have been taking place at the highest levels.
However, the editor-in-chief of the Global Times, a tabloid knobbed by the Communist Party of China, tweeted that Trump was “exaggerating.”
“The two sides have been keeping contact at industrial level, it doesn’t have significance that President Trump suggested,” he said in a tweet Monday. “China won’t submit to U.S. pressure.”
Cramer added that Chinese government officials “haven’t necessarily been square and honest,” distressing that people need to take Trump “seriously.”
Investors should trust that “Trump is going to be definite to weaken the Chinese economy,” the “Mad Money” host concluded.
On Friday, after China announced retaliatory tariffs in reaction to additional upcoming U.S. duties, Trump said he will boost the rate to 15% from 10% on levies set to start Sept. 1 and Dec. 15. He also contemplated he will raise the existing tariff rate on Chinese products to 30% from 25%, starting Oct. 1.
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