When thinking about the Chinese consumer, Jim Cramer wants investors to figure out what exactly it is that we want China to consume.
Do we want China to buy commodities, or retail goods? This is important, because the answer could change what country is the winner of the global trade war.
If people are hoping that China will start to buy lots of metals and natural resources, then they are in big trouble. Chinese industrial production is now about 6 percent, and there are tons of companies that cannot survive unless that number goes back to the high single digits.
"Then the 11 percent growth in Chinese retail sales that we got last night, along with the record breaking Singles Day…what we are having today is the Chinese equivalent of nirvana," the "Mad Money" host said.
Many investors are worried about the decline in industrial production in China and what it means for the global economy. But according to Cramer, it is stupid for U.S. stock pickers to worry.
It is not dumb for actual companies themselves, like Freeport McMoRan or Caterpillar, because they have lost their biggest market. But the Chinese economy is not just reliant on basic materials.
"The other side of the coin, though, is that if you are in the business of making retail goods and the Chinese let you sell them and actually enforce your intellectual property rights, then you are a winner in this new environment, not a loser," Cramer said.
This was why Cramer was thrilled to see the positive Chinese consumption numbers. The United States can now be declared the net winner in a world where the Chinese are buying more finished products.
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Consumers are going online and buying U.S. merchandise and companies like Apple, Nike and Starbucks can sell unlimited goods. Perhaps next the consumers will want everything that's sold in CVS, Kroger and Home Depot.
"You think we are a loser in that case? Hardly. We are the winner," Cramer added.
At the end of the day the U.S. economy is driven by consumption. And Cramer thinks if the Chinese government is looking to recreate their own version of the U.S. economy, who better to do it than the United States?
Looking at it net-net, Cramer has therefore declared us to be the big winner of the global trade war. Except "us" is a different set of winners this time around. The winners will certainly not be the commodity producers, as Chinese demand has peaked and could be headed downhill for years to come.