Rather specific lore-related question

[Kamarov112]

A bit of foreward - the entirety of what I'm going to say here related to game's lore (fluff), not the actual gameplay-related questions.

As per in-game description for the weapon we have this

Once upon a time, in the second half of the 20th century, the world's most popular assault rifle was the AK-47 - also commonly known as the Kalashnikov, in honor of its inventor. Today, these rifles can only be found in museums as their market niche was replaced by the Nokota Copperhead.

and this, as per my opinion, gives rise to the question - how this could actually come this way? The problem here comes from the fact that AK47's (and it's derivatives) heavy prolifetration owes to the fact of massive production operations, run by government-owned factories in Soviet Union and China with some of the rifles being subsenquently distributed among allied countries and communist-aligned violent non-state actors (insurgent/rebel movements).
On the other hand, this is a type of behaviour that no privately-owned corporation would practice ever. Corporation's primary function is always to make profit for its owners. Not to push forward any type of ideology while suffering expenses and losses. This is more reinforced by the fact that Nokota Manufacturing was stated to be a start-up corporation when the D-5 was first produced.
So how this could actually become the way it is as part of the game's lore?