Situation thus involving Asian country backed by church (8)
I believe the answer is:
scenario
'situation' is the definition.
(a scenario is a particular situation or outcome)
'thus involving asian country backed by church' is the wordplay.
I cannot quite see how this works, but
'church' could be 'ce' (abbreviation for Church of England) and 'ce' is located in the answer.
This may be the basis of clue (or it may be nonsense).
(Other definitions for scenario that I've seen before include "Storyline" , "Film plot outline" , "Iron case (anag)" , "Projected sequence" , "Outline -- setting for a novel" .)