CNBC's Jim Cramer urged viewers Monday to be cautious about stocks of Chinese companies. He claimed there is too much regulatory risk for shares to be comfortable owning them."I don’t know how simple I can make it. The host of "Mad Money" said that if a communist government makes it impossible for profit companies to become nonprofits, it is probably not a safe place for you to invest your money.Cramer stated that he doesn't believe some investors are convinced Beijing's multiweek-long crackdown on companies like Didi Global is cooling.Cramer said, "Fool Me twice, shame upon me." Although he has been cautious about Chinese stocks for many years, he spoke positively about Didi prior to the ride-hailing company's IPO in June. China's regulators announced a series if actions against Didi just days later. These included data privacy and privacy claims.Other tech companies also came under increased scrutiny, leading to sharp sell-offs. The KraneShares CSI China Internet ETF is known by its ticker KWEB and has fallen 22.65% over the past month. It has risen 3.42% in the last five days.Cramer stated that "after what they pulled with DidiGlobal and the tutoring firms, I think it is the height of irresponsibility" to give Chinese stocks a second opportunity, even though some Wall Street investors are warming up.He said, "Throughout history, dictatorial regimes have taken tough actions. Then they let the smoke clear, making soothing sounds, luring more suckers who can rip them off." "That's exactly where we are right now. It's possible to try to maintain a calm state, but you never know when the cracks will start.
