The Chinese ready to eat domestic animal somewhere in Mexico (7)
I believe the answer is:
yucatan
'somewhere in mexico' is the definition.
(state of Mexico)
'the chinese ready to eat domestic animal' is the wordplay.
'the chinese ready' becomes 'yuan' (Chinese money ie 'ready').
'to eat' is an insertion indicator.
'domestic animal' becomes 'cat' (I've seen this before).
'yuan' enclosing 'cat' is 'YUCATAN'.
(Other definitions for yucatan that I've seen before include "Alcoholic drink" , "Mexican state" , "N. Mexican peninsula" , "part of Mexico" , "Mayan area of Mexico" .)