The most common and most likely answer to this crossword clue is the 5 letter word SHENG
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Buddy explains!

The straight part
We know that "Made in China mouth organ" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case made in china mouth organ = sheng.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SHENG mean?
SHENG noun- A Chinese wind instrument, a free-reed mouth organ consisting of 13 or more bamboo pipes of various lengths, which are fixed at their bases in a wind chest made from a dried gourd (or, more recently, wood or chrome-plated brass).