I hope you're wrong about a budding alliance with China. Such an alliance would be based solely on short-term political/military considerations, and could be abrogated by either side whenever the situation changed sufficiently.
In contrast, the ties between Israel and the US are built on shared values and deeply help conviction. Israel would be foolish to throw that away (as they risk doing every time they send spies into the US or try to sell weapons to China).
Israel would never willingly throw away the alliance with the United States. However, if the U.S. (by this I mean the Bush administration) were to stab Israel in the back and end the alliance Israel would have little choice but to find other allies for its own survival.
Israelis, by and large, have very strong ties to America and a very strong emotional connection to the U.S. In many ways Israeli culture now imitates American culture strongly. We have no cultural ties to China. Again, such an alliance would be forced on us, never chosen.
As far as spies are concerned, I think you will find that most of your allies spy on you and vice versa.