Much ado in state east of China (7)
I believe the answer is:
palaver
'much ado' is the definition.
(palaver means fuss or ado)
'state east of china' is the wordplay.
'state' becomes 'aver' (both can mean to declare).
'east of' means one lot of letters go next to another (some letters go to the right of others).
'china' becomes 'pal' (china plate is Cockney rhyming slang for mate).
'aver' put after 'pal' is 'PALAVER'.
'in' is the link.
(Other definitions for palaver that I've seen before include "idle conversation" , "(Talk of a) conference" , "Commotion" , "Song-and-dance" , "Idle copious talk" .)