Chinese city’s restriction on books leading to offence (8)
I believe the answer is:
tientsin
'chinese city's' is the definition.
(I've seen this before)
'restriction on books leading to offence' is the wordplay.
'restriction' becomes 'tie'.
'on' is a charade indicator (letters next to each other).
'books' becomes 'NT' (New Testament).
'leading to' says to put letters next to each other (some letters go before or lead others).
'offence' becomes 'sin' (a sin is an offence or transgression).
'tie'+'nt'+'sin'='TIENTSIN'
(Another definition for tientsin that I've seen is " Chinese city".)