The statement from North China Industries Corporation, or NORINCO, carried by the state-run Xinhua news agency, was in response to US sanctions imposed over the firm's alleged help to Iran's missile program.

"We strongly urge the US government to cancel its sanctions against our company and its subsidiaries," the company said according to Xinhua.

"As for the damage to our reputation and the economic losses caused by the sanctions, we reserve the right to take legal action," it said.

The United States imposed the sanctions last month after it determined NORINCO had helped Iran "use, acquire, design, develop, produce or stockpile missiles capable of delivering weapons of mass destruction."

"We express strong dissatisfaction and resolute opposition to this," the company said according to Xinhua.

"The sanctions imposed on our company by the United States are baseless and unreasonable," the company said.

A key supplier of the People's Liberation Army of China, NORINCO also has a visible presence in the US market as an exporter of hunting rifles and other firearms.

NORINCO said in its statement that its ties with Iran were within the framework of new tighter rules on missile technology exports introduced by the Chinese government in August last year.

SPACE.WIRE