In China, have a bit of a hug with grandma? (5)

'in china' is the definition.
I don't know anything about this answer so I can't judge whether it can be defined by this definition.

'have a bit of a hug with grandma?' is the wordplay.
'a bit of' suggests taking the first letters.
'a hug' becomes 'u' (I am not sure about this - if you are sure you should believe this answer much more).
'with' is a charade indicator (letters next to each other).
'grandma?' becomes 'nan' (nan can informally mean a grandmother).
The first letter of 'have' is 'h'.
'h'+'u'+'nan'='HUNAN'

Can you help me to learn more?