"The government let the market come in really bad … then they jammed it up plus 1 percent, then they let the sellers come in and stabilize it. It's kind of a victory for the bulls because it didn't finish down 4 percent," Cramer said on "Squawk on the Street."The Shanghai composite traded down as much as 5.1 percent overnight before ending down 1.68 percent. The move came a day after the index plunged 8.48 percent.
"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 and that's why the market rallied," Cramer said.
U.S. stocks seemed to brush off the volatile Chinese trading session, opening higher.