Abstract: Analyzed are the advantages and disadvantages for the domestic steel tube sector as resulting from China’s access to WTO, the current domestic situation of production of O.C.T.G. and hi-pressure boiler tubes for power plant service, gaps between such home-made tubulars and those made abroad as well as the challenges facing the industry of the country. It is pointed out that to make profit the Steel Tube Branch of Baosteel Corporation should take such actions as simplifying sales channel, developing distribution business and operating E-commerce.