Parrot or ape? It inhabits India and China (7)
I believe the answer is:
imitate
'parrot or ape?' is the definition.
(I've seen this in another clue)
'it inhabits india and china' is the wordplay.
'inhabits' is an insertion indicator.
'india' becomes 'i' (phonetic alphabet: alpha, bravo, charlie etc.).
'and' means one lot of letters go next to another.
'china' becomes 'mate' (china plate is Cockney rhyming slang for mate).
'i'+'mate'='imate'
'it' put within 'imate' is 'IMITATE'.
(Other definitions for imitate that I've seen before include "Appear like, in behaviour or appearance" , "I ate Tim! (anag.)" , "I tame it to copy it" , "Copy, simulate" , "Copy (mannerisms)" .)