China bulls clawed back Tuesday as Chinese equities trimmed most of their session losses, CNBC's Jim Cramer said.

"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.