In China’s unique cross between capitalism and communism, the indicators are now reading red, Jim Cramer warned in a recent Real Money column. Cramer: For Investors, China Offers the School of Hard Knocks. Read more: ‘We really don’t know which kinds of companies China is going to target, but I see one pattern, and you should know it before you put down your cash.’ In a recent No-Huddle Offense segment from his Mad Money TV show, Cramer warned investors to avoid Chinese stocks, saying he’s skeptical after the Chinese government’s recent actions to enforce communist ideals on its own firms. Cramer used the example of the crackdown on ride-hailing giant Didi Global (DIDI) – Get Report and on the private tutoring industry as examples of government regulation posing risks to investors. Shortly after Didi issued a widely heralded IPO in June, China announced actions against the company over data and privacy allegations. Cramer said that kind of regulatory behavior threatens the dollars of investors. The free-market China no longer exists, he said, and there will be more crackdowns ahead. The problem with China is that investors have no idea which industries or companies will be hit next, Cramer warned. In late July, the Chinese government said that after-school tutoring companies had to be run on a non-profit basis and could no longer raise capital or become public companies. The government expressed concerns that many parents could not afford the tutors and the companies were contributing to inequity. “Are you kidding me? These are shocking moves that would never be tolerated here,” Cramer wrote. So while some money managers are willing to dive back into Alibaba (BABA) – Get Report and Baidu (BIDU) – Get Report, Cramer said he’s taking a pass. “I thought that the regime showed its true colors with the after-school crackdown and the Didi fiasco. If you are rich, you are a target and that means they will strip you of your wealth, and if the collateral damages are losses by U.S. investors, so be it.” Cramer wrote.