Probably people think the idea of a factory which makes watches and gets raided and etc has an idea of it like a traditional factory, when realistically it is more likely to be a loose collective of individuals, watchmakers, and suppliers. It's rare that they are actually raiding an entity and shutting it down, maybe some of the individuals get in trouble or some of their stock or suppliers stock in parts gets seized or temporarily interrupted. They can switch to new suppliers and new workers, share machines, etc. Or even just wait for the cursory attention to dissipate. Chinese product/copyright law is very accommodating and really designed to appear to be doing something while actually being rather unimpactful. Hence why its big news when watchmaking machines are actually dismantled or destroyed.
If they really wanted to make an impact or shut these factories down they easily could, but they really do not care and even profit from them both on a individual, provincial, and national level. There is no incentive for them to do so. Likely they even just go and have a chat to the ringleaders and ask them to stop or slow production for a while or ask them to obfuscate it better.
There are even foreign companies specifically employed by foreign watchmakers that operate in China and try to identify these factories, their suppliers and workers and locations, in a systematic manner.
If anything does happen, its usually to "one link in the chain" rather than the entire network. Which can be replaced in time, depending on its level of importance. Further to that, all these networks are pretty much interrelated. Pretty much every factory know and talk to each other on a high level at minimum for the purpose of price fixing. Obviously it can be assumed that they share resources when necessary too.
This part is not so true about watches but may be of interest either way. Replica fashion and watches exist often in a situation where there are three classes, what they produce for the Chinese market which is generally unconcerned about quality (this is different in the watch area where most Chinese consumers DO care), what they produce on a mid-level, and what they produce on a high-level. The high-level version is constantly at risk of being TOO GOOD so they will intentionally not fix flaws or even put them in on purpose. If they have no flaws, then you wont buy the V2 and V3, and etc. The competition is largely artificial.
The same goes for TD, they are just running a business.