If it is a "counterfeit watch" and the quantity is large, it is suspected of a crime and sentenced according to the "crime of selling goods with counterfeit registered trademarks".
The "Criminal Law" stipulates:
Article 214: The crime of selling goods with counterfeit registered trademarks. Anyone who knowingly sells goods with counterfeit registered trademarks and the sales amount is relatively large shall be punished. The person shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also or solely be fined; if the sales amount is huge, he shall be sentenced to fixed-term imprisonment of not less than three years and not more than seven years, and shall also be fined.