City in Germany or China (7)
I believe the answer is:
dresden
This clue is a triple definition!
'city' is the first definition.
(Dresden is an example)
'in germany' is the second definition.
('Dresden' is part of 'germany')
'or' is a link.
'china?' is the third definition.
(a type of porcelain)
(Other definitions for dresden that I've seen before include "Industrial city" , "Decorated china" , "'German city, almost totally destroyed by British air raids in 1945 (7)'" , "Send Red out to the German city" , "Red Ned's in the German city" .)