China has state in commotion (7)
I believe the answer is:
palaver
'commotion' is the definition.
(I've seen this before)
'china has state' is the wordplay.
'china' becomes 'pal' (I've seen this before).
'has' is a charade indicator (letters next to each other).
'state' becomes 'aver' (both can mean to declare).
'pal'+'aver'='PALAVER'
'in' is the link.
(Other definitions for palaver that I've seen before include "Song-and-dance" , "'Flattery, empty talk (7)'" , "Powwow - a lot of fuss" , "tedious bureaucracy" , "Rigmarole" .)