Abstract: Analyzed in the paper is the challenges which the domestic steel tube-making industry is facing.It is pointed out that although China has been so far a giant in terms of steel tube production and consumption in the world,the domestic steel tube-making industry is facing increasingly fierce worldwide competitions due to the fact that the domestic steel tube market is being progressively globalized.Accordingly a proposal is made that during the "11th FYP" period,the centerpiece of the development strategy of domestic steel tube-making industry be rationalization of industrial structure and product mix and R & D of premium special purpose-tubular products as well.