KEY POINTS
  • President Trump has the upper hand in the China trade war, says CNBC's Jim Cramer.
  • Stocks move sharply higher after Trump casts a positive spin on the trade talks.

President Donald Trump has the upper hand in the China trade war because tariffs are hurting the Chinese economy way more than the U.S. economy, CNBC's Jim Cramer said Friday.

"Hate him or like him, he has them where he wants them," said Cramer, characterizing Trump and his hard line approach to try to get China to change what the U.S. sees as decades of unfair trade practices.