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In 1994, some employees of Norinco came under federal investigation from both the [[FBI]] as well as the [[BATF]] after a successful sting dubbed “Operation Dragon Fire.” In May of 1996, in what was called "the largest seizure of fully operational automatic weapons in U.S. history,"<ref>[http://www.time.com/time/archive/preview/0,10987,135999,00.html Anatomy of a Sting], Michael S. Serrill, [[Time magazine]], Jun. 24, 2001.</ref> 14 individuals and an [[Atlanta, Georgia]] company were indicted for the unlicensed importation and sale of 2000 [[AK-47]]'s into the United States. [[U.S. Customs]] agents posing as arms traffickers convinced a group of Chinese arms dealers, including three Norinco representatives, that they were in the market to buy guns for [[drug ring]]s and [[street gang]]s.<ref>[http://www.courttv.com/archive/legaldocs/misc/smuggle.html Massive Seizure of New Automatic Weapons Illegally Smuggled by PRC Weapons Producers], [[U.S. Department of Justice]] Press Release, May 23, 1996. Retrieved from CourtTV September 25, 2007.</ref>  "The defendants offered the government undercover agents more sophisticated weapons, including hand-held rocket launchers, mortars, anti-aircraft missiles, silenced machine guns and even tanks," said Wayne Yamashita of the U.S. Customs Service.<ref>[http://www.cnn.com/US/9605/23/china.arms/ Feds seize 'incredible arsenal', U.S. agent says China was aware of weapons-smuggling operation], [[CNN]], May 23, 1996.</ref> The Customs Service discovered during the investigation that these weapons were bound for [[Oakland, California]] street gangs.<ref>[http://web.archive.org/web/20070301055156/www.washtimes.com/national/20030523-123039-1385r.htm Chinese firm hit with U.S. sanctions], By Bill Gertz, ''The [[Washington Times]]'', May 23, 2003.</ref> According to an [[affidavit]] signed by two of the undercover agents involved in the investigation, representatives from Norinco offered to sell urban gangs shoulder-held missile launchers capable of downing a large commercial airliner.
 
In 1994, some employees of Norinco came under federal investigation from both the [[FBI]] as well as the [[BATF]] after a successful sting dubbed “Operation Dragon Fire.” In May of 1996, in what was called "the largest seizure of fully operational automatic weapons in U.S. history,"<ref>[http://www.time.com/time/archive/preview/0,10987,135999,00.html Anatomy of a Sting], Michael S. Serrill, [[Time magazine]], Jun. 24, 2001.</ref> 14 individuals and an [[Atlanta, Georgia]] company were indicted for the unlicensed importation and sale of 2000 [[AK-47]]'s into the United States. [[U.S. Customs]] agents posing as arms traffickers convinced a group of Chinese arms dealers, including three Norinco representatives, that they were in the market to buy guns for [[drug ring]]s and [[street gang]]s.<ref>[http://www.courttv.com/archive/legaldocs/misc/smuggle.html Massive Seizure of New Automatic Weapons Illegally Smuggled by PRC Weapons Producers], [[U.S. Department of Justice]] Press Release, May 23, 1996. Retrieved from CourtTV September 25, 2007.</ref>  "The defendants offered the government undercover agents more sophisticated weapons, including hand-held rocket launchers, mortars, anti-aircraft missiles, silenced machine guns and even tanks," said Wayne Yamashita of the U.S. Customs Service.<ref>[http://www.cnn.com/US/9605/23/china.arms/ Feds seize 'incredible arsenal', U.S. agent says China was aware of weapons-smuggling operation], [[CNN]], May 23, 1996.</ref> The Customs Service discovered during the investigation that these weapons were bound for [[Oakland, California]] street gangs.<ref>[http://web.archive.org/web/20070301055156/www.washtimes.com/national/20030523-123039-1385r.htm Chinese firm hit with U.S. sanctions], By Bill Gertz, ''The [[Washington Times]]'', May 23, 2003.</ref> According to an [[affidavit]] signed by two of the undercover agents involved in the investigation, representatives from Norinco offered to sell urban gangs shoulder-held missile launchers capable of downing a large commercial airliner.
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In August 2003, the Bush administration imposed sanctions on Norinco for allegedly selling missile-related goods to [[Iran]].<ref>Chinese firm hit with U.S. sanctions, By Bill Gertz, ''The Washington Times'', May 23, 2003.</ref>  While not formally joining the multinational effort to restrict the proliferation of missiles, China did commit in 2000 not to assist in any way the development by other countries of [[MTCR]]-class missiles.  Neither the Chinese government nor Norinco has denied doing business with Iranian companies, although they did deny that it was for missile related purposes at the Shahid Hemmat Industrial Group, Iran’s key manufacturer of ballistic and non ballistic missiles.<ref>[http://news.bbc.co.uk/1/hi/business/2931154.stm US punishes firms in Iran and China], [[BBC]], 23 May, 2003</ref><ref>[http://www.globalsecurity.org/wmd/world/iran/tehran-hemat.htm Hemmat Industrial Complex]. Retrieved from globalsecurity.org September 25, 2007.</ref><ref>[http://www.state.gov/r/pa/ei/bgn/18902.htm Background Note: China], [[U.S. Department of State, Bureau of East Asian and Pacific Affairs.</ref> Norinco has called the sanctions "groundless and unjustified" and "entirely unreasonable."<ref>[http://english.people.com.cn/200306/06/eng20030606_117779.shtml NORINCO Issues Statement on US Sanctions], ''Peoples Daily Online'', Beijing June 06, 2003. English language Version.</ref>  
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In August 2003, the Bush administration imposed sanctions on Norinco for allegedly selling missile-related goods to [[Iran]].<ref>Chinese firm hit with U.S. sanctions, By Bill Gertz, ''The Washington Times'', May 23, 2003.</ref>  While not formally joining the multinational effort to restrict the proliferation of missiles, China did commit in 2000 not to assist in any way the development by other countries of [[MTCR]]-class missiles.  Neither the Chinese government nor Norinco has denied doing business with Iranian companies, although they did deny that it was for missile related purposes at the Shahid Hemmat Industrial Group, Iran’s key manufacturer of ballistic and non ballistic missiles.<ref>[http://news.bbc.co.uk/1/hi/business/2931154.stm US punishes firms in Iran and China], [[BBC]], 23 May, 2003</ref><ref>[http://www.globalsecurity.org/wmd/world/iran/tehran-hemat.htm Hemmat Industrial Complex]. Retrieved from globalsecurity.org September 25, 2007.</ref><ref>[http://www.state.gov/r/pa/ei/bgn/18902.htm Background Note: China], [[U.S. Department of State]], Bureau of East Asian and Pacific Affairs.</ref> Norinco has called the sanctions "groundless and unjustified" and "entirely unreasonable."<ref>[http://english.people.com.cn/200306/06/eng20030606_117779.shtml NORINCO Issues Statement on US Sanctions], ''Peoples Daily Online'', Beijing June 06, 2003. English language Version.</ref>  
 
<ref>[http://www.norinco.com/c1024/english/newscenter/press_03.html Spokesman of the Ministry of Foreign Affairs Met the Press Expressed Strong Dissatisfaction and Firm Opposition on U.S. Sanctions on NORINCO and Related Companies] Norinco press Release. Retrieved from norinco.com September 25, 2007.</ref>
 
<ref>[http://www.norinco.com/c1024/english/newscenter/press_03.html Spokesman of the Ministry of Foreign Affairs Met the Press Expressed Strong Dissatisfaction and Firm Opposition on U.S. Sanctions on NORINCO and Related Companies] Norinco press Release. Retrieved from norinco.com September 25, 2007.</ref>
  
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