Some feel that the NORINCO is a good base gun for customizing, and they are sometimes sought out for that reason.
I have one that was built up/worked on by two different 1911 gunsmiths, and it shoots on a par with Les Baer and Wilson guns costing many times more than I've got in it. It isn't as pretty, to be sure, but its just as accurate and just as reliable.
The downside is that there seems to be some variation in the fit and finish of these guns, even when NIB. Some are outstanding, and some are just so-so. The three that I've been exposed to were pretty good. A friend bought one NIB recently for under $300, and it hasn't really needed much work.
Gun Test magazine, a few years back, said that Norinco 1911A1s had gotten back to the basics. They said they'd probably need a little gunsmith work, but rated them over Colts and Springfields and other 1911as that were hundreds of dollars higher. They gave them a definite BUY.
The price you cite seems to be about the going rate: $275 - $325.