Through the analysis of design "localization", the work aims to present the interactive form of handcraft and design on the one hand, and on the other hand, deeply interpret the connotation and extension of the concept of "localization" of Chinese design by relying on the form of hand-made design. Typical cases were selected to analyze the identity transformation and place migration of handcraft and design, and present the correlation between hand-made design and different cultural fields. In the social structure of productive forces and production relations, the productivity of handcraft was explored to find the original creativity in the interactive form of handcraft and design, and reveal the creation of design. With the development of contemporary Chinese society as the field, hand-made design was related to three basic elements:(1) identity, (2) action, and (3) production. The three factors depended on each other and jointly constructed the "localization" of Chinese design. In conclusion, the problem of "localization" of hand-made design originates from the cultural consciousness of Chinese design and the identity of Chinese craft in the global localization context. "Localization" includes the two directions of downward root and upward growth. Reflecting on the design of the handcraft, it is the original creative force development path for the design of the root of craft, and that of craft direction. In the value compensation of identity transformation, hand-made design presents inter-subjectivity. Towards the modernization of daily life, hand-made design walks in the field changes of urban and rural areas. Tracing back to the noumenon of production, hand-made design evolves subjectivity value in the mutual interaction between labor and human.