The act of making counterfeit LV bags in factories constitutes the crime of counterfeiting registered trademarks. Once convicted, if the circumstances are serious, he 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 circumstances are particularly serious, shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall also be fined.

Relevant legal provisions: "Criminal Law of the People's Republic of China"

Article 213: Without the permission of the owner of a registered trademark, the use of another trademark on the same product is prohibited. Registered trademarks with the same trademark, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also be fined, or shall be fined; if the circumstances are particularly serious, shall be sentenced to fixed-term imprisonment of not less than three years and not more than seven years, and shall also be fined.