The real rub for Cramer is that in the world of marginal growth, China has basically been the main buyer of every raw good out there. Now it has turned into a seller, dumping everything from aluminum to steel into the world market.
The problem with China is that, unlike the United States, China was a place for emerging markets to sell goods, especially natural resources. Without Chinese demand, there will be too much of everything that involves commercial construction, notably the metals and mining equipment.
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The loss of China translates into a loss of global growth and emerging growth. The impact to the economy is felt in the ripple effects by every U.S. company that exports goods overseas.
"Look, I'm not saying we've lost China. I am saying that the real worries about China don't have much to do with its stock market," Cramer said.
Cramer thinks the weakness in the Chinese stock market is less about stocks, and more about the real economy. It is a mere reflection of the Chinese government's lack of transparency, total lack of knowledge and insight on how a stock market should actually work.
"As for the Chinese economy, it might be growing, but it is no longer responsible for the demand needed to gobble up the goods of other countries, which have relied on China's endless growth for years," Cramer said.
And that is the real problem. In a world with not enough growth, China is a massive problem that seems to be getting worse with time.