Dance with the French chaps in fine company (8)
I believe the answer is:
flamenco
'dance' is the definition.
(flamenco is a kind of dance)
'the french chaps in fine company' is the wordplay.
'the french' becomes 'la'.
'chaps' becomes 'men' (I've seen this before).
'in' is an insertion indicator.
'fine' becomes 'f' (abbreviation).
'company' becomes 'co' (abbreviation).
'la'+'men'='lamen'
'f'+'co'='fco'
'lamen' going into 'fco' is 'FLAMENCO'.
'with' acts as a link.
(Other definitions for flamenco that I've seen before include "Spanish guitar music" , "Energetic steps" , "Dance from Andalusia" , "Gypsy dance associated with Spain" , "Spanish 20" .)