Money comes in handy in China (5)
I believe the answer is:
delft
'china' is the definition.
(type of china)
'money comes in handy' is the wordplay.
'money' becomes 'l' (L can mean 'pounds').
'comes in' is an insertion indicator.
'handy' becomes 'deft' (I've seen this before).
'l' placed inside 'deft' is 'DELFT'.
'in' is the link.
(Other definitions for delft that I've seen before include "cups, etc" , "Style of earthenware" , "Dutch blue and white ware" , "English or Dutch glazed earthenware" , "Dutch pottery city" .)