I have doubts as to that characterization. Who would you rather sell to? Your countrymen who know how much it really costs to make the watch and will try and haggle down the price or would you rather sell to the rest of the world who mostly have no clue and will gladly pay higher prices, knowing that it's only a fraction of the cost of the original? Factories in the end are businesses, although the Chinese market is literally huge, they have a lot of competition locally. They'd much rather sell to a wider market, they can get profits much easier that way.
As for manufacturing, I know a bit about it so just saying going back to assembling a former product isn't as cut and dried as most people think. For example, the parts might no longer be available. Now whether that was triggered by the parts factories themselves or the factory told them they would not be buying this part anymore is anybody's guess. Next, since the factory decided that for the foreseeable future, they wouldn't be making this PAMXXX anymore, the equipment used to assemble and finish the product would have been retooled for something else. And with the general lack of control for replica factories, I wouldn't be surprised if the old tooling is now unusable even if they had the parts. And this situation you would have to trickle down to parts factories, which have similar issues to contend with.
