If you follow the hacking over the last few years in relation to China, a clear pattern emerges: China wants United States IP. It's about time someone started taking that threat seriously in the US.
But bashing China is fashionable.
But they did attack US Navy: http://en.wikipedia.org/wiki/USS_Liberty_incident
"Israel isn't threatening Taiwan"
But they do threaten and attacked their neighbours. By the same token, China is not threatening Syria.
"propping up North Korean dictators or funneling weapons to Darfur"
Israel is one of the biggest arms dealers in the world, and a lot of those weapons go to the hands of various dictators, e.g. in Africa.
So you want them to remain poor and primitive just because you can't cash in on their success? That's... not very nice.