"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) - Get Report

. "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


(VZ) - Get Report

is going higher, and he recommended ag stocks such as

Terra Nitrogen






"Monsanto's back," he said, adding that it had a "good" quarter, unlike


(DE) - Get Report


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

At the time of publication, Cramer had no positions in stocks mentioned.

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