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Cramer: What China rate cut means

Cramer: Why China rate cut is positive
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Cramer: Why China rate cut is positive

CNBC's Jim Cramer said Tuesday that China's latest interest rate cut could be a positive sign for the country and global markets in general.

"This may represent a more serious attempt by the Chinese Communist Party to put people to work," Cramer said on "Squawk on the Street."

A man rides his bicycle past the People's Bank of China in Beijing.
Wang Zhao | AFP | Getty Images

"I regarded this as positive because maybe they'll stop doing shenanigans and start doing serious work to help their economy," Cramer added.

Read MoreS&P 500 leaps 2%, out of correction territory

On Tuesday, the People's Bank of China cut its benchmark interest rates for the fifth time in nine months after the 's 7.6 percent drop overnight.

The rate move, along with European equities gaining, led to U.S. stocks opening more than 2 percent higher Tuesday after the Dow Jones industrial average shed nearly 600 points on Monday.