If you are talking about the military, hey, doesn't NSA spy on everybody on this planet? Or didn't Crypto AG spy on every client, even on the Germans, who are allies?
There is a marked difference between intelligence collection and economic espionage.
In the US, economic espionage is illegal and has been for some time, with legislation reinforcing that rule (such as the Economic Espionage act of 1996). If I as a private company engage in economic espionage I am liable to get prosecuted and may get time in prison. The same does not apply to companies in China, where economic espionage of a competitor is not only tolerated but encouraged.
The above linked suit was against individuals for economic espionage and not intelligence collection.
