Southern states pass on hosting Chinese leader (5)
I believe the answer is:
dixie
'southern states' is the definition.
(I've seen this before)
'pass on hosting chinese leader' is the wordplay.
'pass on' becomes 'die' (pass on can mean to die).
'hosting' indicates putting letters inside (inserted letters are welcomed in or hosted).
'chinese leader' becomes 'xi' (Xi Jinping, president of China).
'die' placed around 'xi' is 'DIXIE'.
(Other definitions for dixie that I've seen before include "Southern states that seceded from the USA in 1861" , "Seceding states" , "Southern states of USA - and a rousing song" , "Large iron cooking pot" , "Confederate States of America" .)