This thesis highlights the significance of the informal network and industry performance of rural-based creative sectors in China. The rural based creative class is characterized by small and medium enterprises (SMEs) and relies on tacit knowledge exchange and information transfer. Facing the rural economic development challenges in China, the formal network, like official and governmental organized platforms, has its limitations. In contrast, the informal network is more flexible to connect different individuals in the sector, generating more knowledge spillover effect for rural creative class. A traditional crafts sector, the Hunan Embroidery sector is studied as an example of Chinese rural based creative class. After a thorough study of different types of networks by interviewing different stakeholders in the sector, I find the significance of informal networking to rural-based creative class.