Shares of General Motors (GM) - Get General Motors Company (GM) Report are down 3.5% Wednesday after reports the Chinese government is investigating GM's "Chinese joint venture with SAIC," according to Forbes

The Chinese government is also raising taxes on small cars starting in 2017, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

This comes just a day after both GM and Ford (F) - Get Ford Motor Company Report announced strong auto sales in China. The country has been an area of growth and represents an enormous market for GM, Cramer noted. 

Prior to Wednesday's decline, GM stock had climbed more than 20% over the past three months as the valuation began to increase while earnings, sales and cash flow all moved higher, he said. A notable part of that success came from China.

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But beware. China's move looks like it could be a "total tit for tat" against the U.S. government, given President-elect Trump's tough stance on global trade, Cramer reasoned. 

Instead of sending a verbal warning, the Chinese government could be responding with action. These are new risk factors for companies for U.S.-based global companies such as GM, he concluded. 

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.