In 1993, the import of most Norinco firearms and ammunition into the United States was blocked under new trade rules when China's permanent normal trade relations status was renewed. The prohibition did not apply to sporting shotguns or shotgun ammunition however. The year subsequent to that, U.S. Customs agents conducted a sting against Atlanta based importers of Norinco firearms. According to an affidavit signed by two of the undercover agents involved in the investigation dubbed "Operation Dragon Fire", representatives from Norinco offered to sell urban gangs shoulder-held missile launchers capable of downing a large commercial airliner.
In August 2003, the Bush Administration imposed sanctions on Norinco for allegedly selling missile-related goods to Iran. These sanctions led to a prohibition on imports into the US of the remaining types of firearms and ammunition not covered by the 1993 ban. While neither the Chinese government nor Norinco has denied doing business with Iranian companies, they dismissed the allegation that it involved missile related goods. Norinco has called the sanctions "entirely unreasonable."