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I don't think it's crazy at all. We (i.e. the US) use our SIGINT abilities to spy on allies all the time, or at least according to numerous books and leaks. With that said, I'm not sure that the US government considers China an ally.

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espionage != cyber warfare

> attack crippled thousands of computers around the world

Technology has a tendency of merging realms. Whether you compromise a system to get information or to cripple it is pretty much a detail.

Yes, and that includes stealing trade secrets from European companies, which are nominally US allies.

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