Most likely a combination of naivety mixed in with a bit of white worship.
I’m not surprised at all this was a Shanghai company, probably run by people who look at all the western countries promoting Indian migration and think they must have a good reason.
But probably more importantly, thanks to the GFW, most mainland Chinese are insulated from the reality of Indian state sponsored mass migration. They probably still are thinking it’s like it was 20 years ago when it was only the best and brightest that emigrated based on their own merits and capabilities. They also have no idea about the industrial scale forgery of qualifications that goes on in India. I would bet those Indians looked like they should be Silicon Valley rockstar level capable, but may well be as actually qualified as Apu from the Simpsons.
Chinese investigators should absolutely so through their CV and qualifications with a fine tooth comb. And indeed, I would suggest mandatory competency tests for all Indians coming to China on work Visas to make sure they are actually as qualified as they claim they are. That alone should weed out the worst kind of Indians who would pull shit like this.