After news that the United States and China reached a momentary truce on trade pushed stocks higher on Monday, CNBC's Jim Cramer broke down some of the side effects of better relations.
"Right now, many of our companies are forced to have these 50-50 joint ventures with local Chinese affiliates if they want to operate in China. That, of course, crimps their profitability," the "Mad Money" host explained.
"More important, though, is that the Chinese get invaluable information about what our companies do and how they make what they make," Cramer added. "Those joint venture partnerships are then able to pretty much steal our intellectual property. That's a major sticking point."
But after National Economic Council Director and former CNBC host Larry Kudlow told CNBC's "Squawk on the Street" that these joint ventures could potentially unravel, Cramer got more bullish on the prospects of trade talks.
"Maybe [U.S. companies] can go solo. They might be able to simply sell their products without giving away the store," Cramer said. "That would be huge."