Liu Jianwei (劉建偉), a lawyer representing the delegation, said there was no solid proof of Chinese products causing market disruption, as the Taiwanese towel manufacturing industry showed signs of decline before Chinese products arrived.
Citing figures from the petition, Liu said production of locally made towels in 2000 had slumped by 32.65 percent from 1999, and the volume in 2002 slid by 45.96 percent from 2001.
The decline may be related to industry migration to Vietnam and China, Liu said. The growth rate of Chinese towel imports has also declined over the years, and would cause no threat to local rivals, he added.
The commission will conclude the investigation by March 25 and decide whether or not to enact safeguard measures.
On Wednesday, the Ministry of Finance also announced it would launch an anti-dumping investigation into the case, which could take more than 260 days.
A slew of countries have taken safeguard measures to protect their industries from cheaper Chinese goods, including the US and the EU.
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