Compared to the CCP, it's fairly benign. The example you gave, Merkel's phone, is a textbook example. Spy all you want, but we're not stealing IP or sabotaging power grids (to my knowledge). We're not interfering with other countries' covid response or possibly corrupting medical records.
> why would the Chinese be interested in sabotage here?
Presumably, because it gives China a geopolitical edge in the international sphere. Think about how damaging it would be to not only be the country where the virus started, but also not having a valid vaccine. By slowing down Western vaccine efforts and boosting their own, they can regain the upper hand and make China look strong. "Strong China" keeps those leaders in power, and they'll do whatever they can to project the feeling that they're in control and "better" than the West. Also, China is posturing itself to be a counterpoint to the West, but they need to show themselves as somehow a viable candidate for that.
So a wide variety of reasons, but it's easy to see why they would do this.