Despite the considerable amount of research regarding trust as one of the most important characters and competitive advantages for an industrial cluster, few empirical studies have examined whether geographic proximity still leads to higher levels of trust in the current Internet era. This article explores this issue of trust from a network embeddedness perspective. Based on the data from Zhongshan gas appliance cluster, we employ structural equation modeling to examine the extent to which relational embeddedness, structural embeddedness, and positional embeddedness have any impact on trust-building in the cluster. Our findings reveal that high clique trust and low aggregate trust coexist in the cluster, showing that the effect of geographical proximity on trust has been weakened and is no longer a sufficient condition for trust-building. This study also gives some suggestions on how to improve the trust within a cluster through network governance.Lez Rayman-Bacchus is a research follow in the Business School, University of Winchester, United Kingdom. He also founded the Centre for Corporate Responsibility at London Metropolitan University, and the international symposium on Corporate Responsibility and Sustainable Development. His research interests include the practice of strategy and international management, currently focused on Chinese SME attitudes and behavior in industrial network clusters, and that of Middle Eastern businesses. He has a background in both industry and academia. He spent more than 15 years with high technology multinational companies working in business development and marketing, before moving into research and teaching on strategy, corporate responsibility and sustainability, corporate ethics, and corporate governance. He has published more than about 30 papers as well as one academic book.GuangMing Xiang is pursuing master's degree in finance at the School of Management and Economics in UESTC.