No, it's wrong for anyone. And in this case, the German company has recourse to actually sue the US military, and with plenty of history backing this up, can actually win!

Good luck trying to sue the Chinese military for contract breach of installing software on more computers than specified...

Further, note that this is an instance of piracy versus IP theft that then directly competes with the original source, as a coordinated playbook with government support to advance local industries. It's pretty much apples & oranges.