I just returned from China on the weekend. I spent a week in Hua Qiang Bei and toured two factories. I was blown away by the availability of seemingly everything. The article does not exaggerate the sheer number of components available for every possible use it seemed like. One section of a huge multi story mall was only security cameras, the next section was only home audio equipment, the next had a all the parts to make LED lights for architectural applications, then another had a desktop SMT machine for sale ($3800, 12 reels). It went on for several blocks of giant electronics shopping malls.
Language is definitely a barrier, and the sheer choice could be overwhelming. When you have 10 LEDs to choose from at Radio Shack you can make a choice easier than when you have ten floors of stalls that all sell LEDs. I got lost on several occasions wandering around these huge stores of parts. It was awesome.
I wish there was some comparable place in the US, but I have never heard of it.