Cramer's 'Stop Trading!': China's Red Hot

"China is red hot and staying hot," said Jim Cramer on CNBC's "Stop Trading!" segment on Tuesday.

Vehicle sales are up in China, led by General Motors(GM Quote). "People have to understand that the Chinese stimulus plan is really rooted in people's spending," Cramer said. It's "enough to be able to change spending habits, buy more, drive more cars."

He called China "the best market in the world" and predicted that it still has "far to go."

But there's a tradeoff, Cramer said, because China's stimulus plan isn't regulated by the rules of a democracy. "A democracy has a lot of different considerations to make it more difficult," he said. "I'll take the freedom over what they've got."

Cramer said that Verizon(VZ Quote) is going higher, and he recommended ag stocks such as Terra Nitrogen(TNH Quote) and Monsanto(MON Quote).

"Monsanto's back," he said, adding that it had a "good" quarter, unlike Deere(DE Quote).

He likes Terra Nitrogen for its dividend. "TNH is a great fertilizer play," he said.