Cramer Says He Has Proof China Is Losing The Trade War

Is there a winner and loser so far amid trade tensions between China and the United States? If the performance of the stock market can be used as a gauge, then the answer is clear, said CNBC's Jim Cramer: China is losing. 

What Happened

Another $200 billion of tariffs on Chinese goods were announced Monday. Yet since the start of 2018, the S&P 500 index is up more than 7 percent, Cramer said during his "Mad Money" show Monday.

The strong gains in the market seem to contradict the notion that tariffs drag on the economy, he said. 

In contrast, the Chinese stock market is flirting with its lowest levels since late 2014 and is down 20 percent for 2018, Cramer said. China's concerns related to trade and tariffs are "real problems and real worries," and it is likely the Chinese markets haven't bottomed yet, the CNBC host said. 

Why It's Important

If America was losing the trade war, one of the most impacted sectors would be retail, and the stocks in the sector would be at 52-week lows, Cramer said. This isn't the case at all, with many retailers at or near their 52-week highs and backed by strong employment and a healthy economy, he said. 

What's Next

"The pundits can fret about all they want about the trade war saber-rattling, but the action in the stock market tells me that it's not cut-and-dry how much these issues do hurt business, especially not when you consider the red-hot state of our economy," Cramer said.

Related Links:

Analyst: No Reason For Apple Investors To Sweat Tariffs — Yet

Ray Dalio: US Relationship More Concerning To China Than Tariffs