All countries conduct espionage to the extent that they prioritize their capabilities, and against targets where they perceive threats and/or opportunities.
All countries keep an eye on their neighbours, just like all people keep a general awareness of their surroundings. All countries don't tap the phones of their neighbours's leaders, or install malware on equipment sold to them, or even spies over. Morals aside, taking hostile action tends to backfire, as the US is learning. Reputation is a resource, and it's stupid to waste it.
The problem with Machtpolitik is that even if you win a few rounds, you can't stop playing without giving away all your ill-gotten gains, and sooner or later you lose. And when you do, you don't get back what you've lost, even if you quit. And sometimes the house wins and everyone loses big time. And the Devil's the dealer.
The US is a good case study: the country is hopelessly in debt and the infrastructure is crumbling, yet it's going to be spending $ 1 trillion for a new fighter. It's madness, but that's the price US pays for the way it fought the Cold War. Ruthlessness doesn't go away and leave you alone just because whatever enemy you conjured it up to win has. That's why it's foolish to ignore morality, even in international politics - especially in international politics, since there's no nice constable to run to if you manage to get in over your head.