NEW YORK (TheStreet) -- TheStreet's Jim Cramer explains why he thinks China's economy is getting stronger, not weaker as some believe.
Cramer says the Chinese government is cleaning up a corrupt economy, closing down a lot of businesses that are uneconomic, and cracking down on political corruption, all of which is making the GDP drop. But he thinks China is getting stronger because it's becoming more of a legal place to do business.
Cramer notes the orientation remains more domestic, rather than focused on major importing.
Furthermore, Cramer says anyone who says this situation is bad for China is misjudging the fact that this regime "is hellbent on cleaning up the whole country." He points to the government's decision to raise margin rates and to the fact that there is less lending in order to give the housing market a chance to cool off.
Cramer says he is not criticizing the Chinese and thinks they are being smart.