You're thinking of Google as a single top down company. It isn't. Think of it as an anarchy of warlords where each pulls the strings and management doesn't really know what's going on.

Flutter made a lot of sense during the Oracle lawsuit when Google needed a way to show Oracle that it can pivot from Java. Now it no longer makes sense but the inertia is too deep.

My guess is that flutter is sold internally through the Huawei support as a leg within China.