End up arresting head of state in Communist China (7)
I believe the answer is:
dresden
'china' is the definition.
(a type of porcelain)
'end up arresting head of state in communist' is the wordplay.
'up' is an anagram indicator.
'arresting' is an insertion indicator.
'head of' says to take the initial letters.
'in' means one lot of letters goes inside another.
'communist' becomes 'red' (red is a kind of communist**).
The first letter of 'state' is 's'.
'end' with letters rearranged gives 'den'.
's' inserted inside 'red' is 'resd'.
'den' placed around 'resd' is 'DRESDEN'.
(Other definitions for dresden that I've seen before include "'German city, almost totally destroyed by British air raids in 1945 (7)'" , "SE German city" , "Famous china made at Meissen" , "Saxony capital" , "source of 26 [CHINA]" .)